Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Company Name: KEPPEL CORPORATION LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 13.38 |
KEPPEL CORPORATION 20 April 2012 |
| STRONG 1Q12 RESULTS; EXPECTING MORE ORDERS AHEAD -Strong 1Q12 results -Lumpy performance from Property -Rig enquiries remain healthy |
| Keppel Corporation (KEP) reported a 86.4% YoY rise in revenue to S$4.3b and a 141.0% increase in net profit to S$750.8m in 1Q12, such that net profit accounted for 48% and 49% of ours and the street's full year estimates, respectively. Excluding lumpy contributions from the property arm, 1Q12 net profit was still above our expectations. KEP's operating margin in the quarter was 22.2%, with O&M turning in EBIT margin of 15.1% vs our expectation of 14%. Meanwhile, enquiries for rigs remain healthy and we expect more newbuilds and upgrading work ahead. Maintain BUY with unchanged S$13.38 fair value estimate. |
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