Tuesday, January 25, 2011

KepLand - Macquarie ups Keppel Land target to $4.81

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
Research House: MacQuarie


Macquarie has raised its target price for Keppel Land (KLAN.SI), Singapore’s third-largest property developer, to $4.81 from $4.43 and kept its “neutral” rating.



Macquarie said Keppel Land’s core earnings for 2010 was $273.2 million, which were driven by residential projects in Singapore and China.



The company posted on Monday an eight-fold rise in fourth quarter net profit, helped by a $363.8 million one-time gain from the sale of its one-third interest in a large office project. It had a net profit of about $1.05 billion last year.



Given Keppel’s strategy of divesting income-producing office assets to its unit K-Reit Asia (KASA.SI), Macquarie expects the firm to announce further divestment plans over the next one-two years.

The brokerage also noted that Keppel’s low debt gearing of 20% could mean it may bid for more sites in China and Vietnam.

Shares of Keppel Land were up 2% at $4.66 at 10:36a.m., but have fallen 2.9% since the start of the year.

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