KepLand - Keppel Land rebounds, outlook remains bright

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

Shares of Singapore property  developer Keppel Land (KLAN.SI) rose as much as 2.4% in a  weak overall market on Friday, rebounding from a four-month low  as the firm’s outlook remains bright, traders said.



At 11:27 a.m., Keppel Land shares were 1.5% higher at  $4.18, outperforming the Straits Times Index’s <.FTSTI> 0.4 % loss. Over 3.4 million Keppel Land shares had changed  hands.

“Keppel Land was one of the hardest hit by the rate hike in  China as they have a larger exposure to the country, but I think  it was oversold as fundamentally the firm still remains strong,”  said Donald Chua, an analyst at CIMB Research.

Keppel Land’s shares have fallen 14.2% since the  start of the year, weighed by concerns that China may introduce  further measures to curb property prices.

“At these levels, I believe it’s attractive for investors to  buy into Keppel’s shares,” said Chua, who has a buy rating and a  target price of $5.91.

Chua highlighted that Keppel Land’s land bank in China  consists mainly of township projects, which have lower costs and  are able to command firm selling prices.