Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
CIMB in a July 21 research report says: "2Q11 core net profit of $47 million was below expectations at 13% our FY11 estimates and consensus. 1H11 core earnings of $123 million formed 34% of our full year.
"Despite the recent accounting rule change, the Street appeared to have over-recognised sales from its Singapore projects sold under the DPS, and overseas projects yet to be completed - a recognition issue. We adjust our FY11-13 core EPS by +39%/-32% to reflect this change.
"Operationally, China sales have expectedly slowed with slowing office leasing momentum leading to status quo for pre-commitments. Trading at a 38% discount to RNAV, we believe the market has overly discounted these cyclical blips. Target price of S$4.73 (20% discount to RNAV of $5.92). MAINTAIN OUTPERFORM."
Company Name: KEPPEL LAND LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 4.73 |
CIMB in a July 21 research report says: "2Q11 core net profit of $47 million was below expectations at 13% our FY11 estimates and consensus. 1H11 core earnings of $123 million formed 34% of our full year.
"Despite the recent accounting rule change, the Street appeared to have over-recognised sales from its Singapore projects sold under the DPS, and overseas projects yet to be completed - a recognition issue. We adjust our FY11-13 core EPS by +39%/-32% to reflect this change.
"Operationally, China sales have expectedly slowed with slowing office leasing momentum leading to status quo for pre-commitments. Trading at a 38% discount to RNAV, we believe the market has overly discounted these cyclical blips. Target price of S$4.73 (20% discount to RNAV of $5.92). MAINTAIN OUTPERFORM."
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