Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Company Name: KEPPEL CORPORATION LIMITED
| Research House: Phillip Securities | Price Call: HOLD | Target Price: 10.84 |
Phillip Securities Research Pte Ltd Singapore 14 June 2011 | ||
(MICA (P) 048/11/2010) Ref No: SGMN2011_0114 | ||
Fundamental Call | ||
Keppel Corporation Ltd - Company Update (Nicholas Low) Recommendation: HOLD Previous close: S$11.06 Fair value: S$10.84 · Awarded US$260 million accommodation semi-submersible contract from Floatel International. · Wins semi-submersible drilling tender contract from Seadrill worth US$142 million. · Expect moderation in margins going forward. · We lower FY11e and FY12e EPS from 88 cts and 92 cts to 65 cts and 73 cts respectively. · Downgrade from Buy to Hold following a change of analyst with change in fair value from $11.58 to $10.84. | ||
| Source: Phillip Securities Research Pte Ltd | ||
Company Results | |||||||||
S/N | Company Name | Q/HY/FY | Currency, Units | Revenue | Net Profit | ||||
Current | Previous | Change (%) | Current | Previous | Change (%) | ||||
1 | Low Keng Huat (S) Ltd | 1Q | S$'000 | 39,796 | 89,820 | (55.7) | 22,483 | 19,313 | 16.4 |
| Source: SGX Masnet | |||||||||
Company Highlights |
United Fiber System Limited announced that Poh Lian Construction (Pte.) Ltd, a wholly owned subsidiary of the Company has been awarded a building contract from Impac Holdings Pte Ltd, a member of the City Development Limited Group, for the construction of condominium comprising of 5 blocks (19, 21, 22, 23-storey) residential flats (total 521 units) with 2 basement carparks, swimming pool and communal facilities at Sengkang West Ave / Fernvale Link. The total contract sum of the project is S$166,820,493.00 and the construction period is 156 weeks commencing from 1 August 2011. (closing price: S$0.045) BreadTalk Group Limited announced that Shanghai BreadTalk Co., Ltd, a wholly owned subsidiary of BreadTalk International Pte. Ltd. which in turn is a wholly owned subsidiary of the Company, has entered into a 50:50 joint venture agreement with Ajinomoto Bakery Co., Ltd, a company incorporated in Japan, to register a company in Shanghai, PRC under the name of Shanghai ABPan Co., Ltd. Shanghai ABPan will carry on the business of manufacturing and selling frozen dough for bread and Danish pastries to bakery outlets within China. This partnership will take advantage of SBT's store development expertise and brand power and AJB's manufacturing technology to build a strong value chain in the Chinese bread market. During the tenor of the JV Agreement, it was agreed that SBT and AJB would collectively contribute an investment amount of up to RMB46.4 million in Shanghai ABPan. (closing price: S$0.605) Singapore Post Ltd announced that it has today entered into a non-binding Memorandum of Understanding with Efficient, concerning the proposed collaboration and co-operation between the parties in data and document management business in Indonesia (and such other countries as may be mutually agreed between the parties). Pursuant to the MOU, it is contemplated that Efficient and SingPost (i) will jointly invest in setting up of data and document management business operations in Indonesia; (ii) will jointly identify business opportunities relating to data and document management in such countries as may be mutually agreed in writing between parties; and (iii) may mutually agree to engage in discussions and negotiations with other potential investors and/ or business partners in relation to the Proposed Collaboration. (closing price: S$1.16) Hoe Leong Corporation Ltd refers to the announcement dated 11 March 2011 in respect of the option agreement entered into with RBC Dexia Trust Services Singapore Limited (acting in its capacity as trustee of Cambridge Industrial Trust) in respect of the sale and leaseback of the property known as 4 & 6 Clementi Loop. The company announced that the Company has completed the sale of the Property to the Purchaser today. Concurrently, the Company has also today entered into a lease agreement with the Purchaser to lease the Property. (closing price: S$0.30) Q & M Dental Group (Singapore) Limited announced that Q & M Dental Group Holdings (China) Pte. Ltd, a 100% owned subsidiary of the Company, has on 13 June 2011 entered into a non-binding memorandum of understanding with the shareholders of Beijing Le Le Jia Medical Solutions Co., Ltd, Mr. Wang Jia Lei and Ms Wang Jia Bei. The MOU relates to a proposed joint venture which will complement the Group's expansion plans of its dental healthcare business into the People's Republic of China. (closing price: S$0.815) Keppel Corp to build new generation accommodation semi worth US$260 million for Floatel. Keppel FELS Limited has been awarded a contract worth about US$260 million by returning customer, Floatel International Ltd, to build a new generation accommodation semisubmersible (semi) for delivery in 1Q 2014. This new rig developed by Keppel O&M's Deepwater Technology Group, will be built to the SSAU4000NG design with Dynamic Positioning (DP) 3 capability. It marks Keppel FELS' third accommodation semi project with Floatel, after the delivery of Floatel Reliance (SSAUTM 3600 with DP2) and Floatel Superior (DSSTM 20NS with DP3) last year. (closing price: S$11.06) |
Source: SGX Masnet |
Local and Regional Markets Headlines |
Shares in Singapore retreated 0.63 per cent by closing on Monday. The benchmark Straits Times Index gave up 19.31 points to end the day at 3,059.04. A total of 1,034.60 million shares changed hands on a market turnover of S$1,173 million (US$947.83 million). Decliners outnumbered advancers 4 to 1. Hong Kong shares snapped a seven-day losing streak on Monday as beaten-down banking shares posted gains, setting up the market for a possible bounce from oversold conditions if inflation data from China comes in better than expected. The benchmark Hang Seng Index rose 0.4 per cent to 22,508.1. Turnover on the Hong Kong stock exchange fell to their lowest this month. China's stocks dropped, driving the benchmark index to a more than four-month low, before the release of economic data tomorrow that may show industrial output is slowing as inflation accelerates. The index ended last week at 2,705.14 and sank 0.2 percent to 2,700.38 at the 3 p.m. close today, the lowest close since Jan. 25. The CSI 300 Index slipped 0.39 percent to 2,950.35. The Nikkei stock average lost ground on Monday, hurt by a surprise fall in Japanese machinery orders, further signs of a global economic slowdown and a drop in shares of Toyota Motor after a weaker-than-expected earnings forecast. Japan's core machinery orders unexpectedly dropped in April in a sign that disruptions to energy supplies are impeding capital expenditure although demand should later rise when the country rebuilds its earthquake-ravaged northeast coast. The benchmark Nikkei fell 0.7 per cent to 9,448.21, while the broader Topix shed 0.6 per cent to 812.26. |
Source: BT Online, Bloomberg, Reuters |
US Market News |
U.S. stocks drifted sideways on Monday, in what is likely a temporary pause in a sell-off brought on by growing fears of another economic downturn. The benchmark S&P 500 rose for only the second time in the past nine sessions while the Nasdaq 100 managed to survive a fall below its 200-day moving average at 2,218, quickly reversing those losses.Investors remained noncommittal about whether stocks have become cheap enough after six weeks of selling to pour some money back into equities again. The Dow Jones industrial average gained 1.06 points, or 0.01 percent, to end at 11,952.97. The Standard & Poor's 500 Index added just 0.85 of a point, or 0.07 percent, to 1,271.83. But the Nasdaq Composite Index dropped 4.04 points, or 0.15 percent, to close at 2,639.69. |
Source: Reuters |
| Director / Substantial Shareholders' Transactions | |||
| Company | Substantial Shareholder | From (%) | To (%) |
| Multi-Chem Ltd | Han Juat Hoon | 27.992 | 28.131 |
| Perennial China Retail Trust | Cosmo Top Limited | 0 | 12 |
| Osim International Ltd | Ron Sim Chye Hock | 41.28 | 41.35 |
| Pacfic Andes Resources Devl Ltd | N.S. Hong Investment (BVI) Limited | 65.57 | 65.59 |
| Aspial Corporation Ltd | Koh Wee Seng | 13.70 | 13.72 |
| Fraser and Neave Ltd | Prudential Asset Management (Singapore) Ltd | 7.99 | 7.97 |
| Kim Eng Holdings Ltd | Malayan Banking Berhad | 90.20 | 92.47 |
| Capitamalls Asia Ltd | The Capital Group Companies, Inc. | 7.98 | 6.984 |
| Goodpack Ltd | Amundi S.A. | 4.85 | 5.09 |
| Allgreen Properties Ltd | Kuok (Singapore) Limited | 51.52 | 51.58 |
| JK Yaming International Holdings Ltd | Citigroup Inc. | 93.34 | 94.06 |
| China Minzhong Food Corp Ltd | GAM Group AG | 5.99 | 6.15 |
| Olam International Ltd | UBS AG | 5.18 | 6.01 |
| Capitacommercial Trust | ING Clarion Real Estate Securities LLC | 4.99 | 5.13 |
| Nobel Design Holdings Ltd | Kho Choon Keng | 5.30 | 6.28 |
| Source: SGX Masnet | |||
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