Singapore Stock Market News

Keppel Corporation - It gets better at 50

StockFanatic
Publish date: Mon, 23 Jul 2018, 01:13 PM
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Our hopes of a special dividend materialised with a DPS of S$0.15 (interim: S$0.10, special: S$0.05), payable on 7 Aug 18. We up FY18F DPS to $0.32 (c.4.6% yield).

■ 2Q18 profit of S$246m exceeded our S$190m forecast, thanks to revaluation gain from Nassim Woods and narrower O&M losses.

■ 1H18 profit (S$584m) was 55% of our and 58% of consensus FY18F. Adding the Beijing Aether divestment gain, profit would reach c.S$698m, or 70% of our FY18F.

■ KEP is able to weather property cooling measures with the vast portfolio of assets with options to defer development of cheap landbank or expedite asset turn.

■ Active asset recycling and gradual recovery in O&M could sustain earnings growth beyond FY18F. We think 1x CY18F P/BV (-1 s.d. of LT mean) is undemanding. Read More
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