Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
DBS Vickers Securities in a Mar 28 research report says: "Keppel has signed an LOI with a repeat customer, Floatel International Ltd (Floatel), to build a new generation harsh environment accommodation semi submersible worth US$315mn for delivery in July 2014.
"The contract price of US$315 million is higher than the previous 3 units at US$305 million, US$206 million and US$260 million respectively for Floatel. Our FY2012 order wins assumption for KEP is $6 billion; YTD, it has secured $194 million of orders.
"The LOI, once confirmed as contract, will bring YTD win to $591 million, forming c.10% of our order win assumption. We believe Keppel stands a good chance to secure this contract from Floatel. The stock is trading at PE of 12x(FY12F) and 11.6x(FY13F) and offers an FY12F dividend yield of 4.1%. Target price of $12.34. MAINTAIN BUY."
Company Name: KEPPEL CORPORATION LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 12.34 |
DBS Vickers Securities in a Mar 28 research report says: "Keppel has signed an LOI with a repeat customer, Floatel International Ltd (Floatel), to build a new generation harsh environment accommodation semi submersible worth US$315mn for delivery in July 2014.
"The contract price of US$315 million is higher than the previous 3 units at US$305 million, US$206 million and US$260 million respectively for Floatel. Our FY2012 order wins assumption for KEP is $6 billion; YTD, it has secured $194 million of orders.
"The LOI, once confirmed as contract, will bring YTD win to $591 million, forming c.10% of our order win assumption. We believe Keppel stands a good chance to secure this contract from Floatel. The stock is trading at PE of 12x(FY12F) and 11.6x(FY13F) and offers an FY12F dividend yield of 4.1%. Target price of $12.34. MAINTAIN BUY."
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