Financial News - 30 APR 2010: Keppel Land Dividend Reinvestment Scheme - Issue price of new shares

Keppel Land Dividend Reinvestment Scheme - Issue price of new shares. See report.

Key Points

• Issue price is $3.63 for each new share.
• Issue price represents discount of 4% to the average of the daily volume weighted average price from 27 April 2010 to 29 April 2010.
• Shareholders not participating in the scheme will receive the final dividend in cash.

Author's Note
The final dividend is 8 cents per share, or S$80 per lot. For S$80, you can get about 22 shares based on the issue price of S$3.63.

The broader market was down quite significantly around 27 April 2010 to 29 April 2010 following the sell down due to uncertainty over Greece. 'Unfortunately', Keppel Land has been quite resilient for those few days, and was trading above S$3.8 at times, and was above its cousin stock Capitaland most of the time. These has probably raised the average, and thus an issue price that is not very low.

Stock Target Price - Updated Target Price for Keppel Corp following Q1 2010 results

Updated Target Price and Recommendation for Keppel Corp following release of Q1 2010 results:

OCBC    BUY    S$11.22
DMG    NEUTRAL    S$9.90
KIM ENG    BUY    S$11.07
DBS    BUY    S$11.50

Latest updates at Stock Target Price.

Financial News - 22 APR 2010: Quarterly Earnings Report for Keppel Corp

First quarter 2010 results for Keppel Corp:

• Full Report

Key Points

• Net profit improved 13% to S$322 million compared to 1Q09.
• Earnings per share of 20.2 cents, up 13% from 1Q09’s 17.9 cents.
• Annualised ROE remained above 20%.
• Economic Value Added increased from S$211 million to S$240 million.
• Cash outflow of S$501 million.

Author's Note
Prior to the announcement of results after the trading hours today, the stock has surged to a new 52 week closing high of $9.97, with an intraday high breaking the $10 mark at $10.04.

Stock Target Price - Updated Target Price for Keppel Land following Q1 2010 results

Updated Target Price and Recommendation for Keppel Land following release of Q1 2010 results:
OCBC    BUY    S$4.18
DMG    BUY    S$3.84
KIM ENG    BUY    S$4.68
CIMB    OUTPERFORM    S$4.53
DBS    BUY    S$4.13

Latest updates at Stock Target Price.

Stock Target Price - Updated Target Price for K-REIT by DBS following Q1 2010 results

Updated Target Price and Recommendation for K-REIT following release of Q1 2010 results:
DBS HOLD S$1.17

Latest updates at Stock Target Price.

Financial News - 20 APR 2010: Quarterly Earnings Report for Keppel Land

First quarter 2010 results for Keppel Land:

• Full Report

Key Points

• First quarter net profit surged 75.3 per cent on-year to S$64.7 million. 
• Revenue rose 9 per cent to S$158.8 million for the three months ended March 31. 
• Net profit from its property trading arm grew 53.6 per cent to S$48.7 million. 
• Net profit from property investment by 29.2 per cent to S$12.4 million from a year ago. 
• Fund management profit up 60.9% on higher fee income from K-Reit Asia and Alpha Investment Partners.

Author's Note
The EPS for the latest quarter is 4.5 cents. Latest NTA is $2.43.

Financial News - 19 APR 2010: Quarterly Earnings Report for K-REIT

First quarter 2010 results for K-REIT:

• Press Release
• Financial Statements
• Presentation Slides

Key Points

• Net property income increased 28.4% year-on-year to $13.9 million, due mainly to higher rental income.
• Distributable income rose by 13.8% year-on-year due mainly to higher net property income and contribution from One Raffles Quay Pte Ltd. 
• DPU for January to March 2010 amounted to 1.33 cents.
• Portfolio committed occupancy of 96.0% as at 31 March 2010 is higher than Core CBD occupancy of 91.9%. 
• Aggregate leverage lowered to 25.2% as at 31 March 2010 on enlarged asset base. 
• Acquisition of 275 George Street in Brisbane, Australia enlarged portfolio asset size to $2.3 billion and net lettable area to 1.5 million square feet. 

Author's Note
There will be no distribution payment this quarter as K-Reit distributes semi-annually. The DPU of 1.33 cents will be paid in the next quarter together with the DPU for the next quarter.


Base on the latest closing price of 1.130 for K-Reit on Apr 19, the annualized yield for the DPU of 1.33 cents is 4.7%. This is relatively lower than the other office Reits. But the gearing of the Reit is low at 25.2%, and the new Australian property has only contributed 1 month of rental revenue for the quarter. The cash flow statement in the latest quarterly report also shows that the Reit still has about S$340.3 million of cash and cash equivalent mainly from its rights issue last year that has yet to be deployed.

Stock Target Price - Updated TP for Keppel Corp by AMFraser following acquisition of Shipyard in Brazil

Updated target price of Keppel Corp by AMFraser following acquisition of Shipyard in Brazil:
Recommendation: Buy 
Target Price: S$10.65

Latest updates at Stock Target Price.

Financial News - 14 APR 2010: Keppel fortifies market leadership in Brazil with new shipbuilding yard

Keppel fortifies market leadership in Brazil with new shipbuilding yard. See press release and related report.

Key Points

• Keppel Offshore & Marine Ltd (Keppel O&M), through its wholly-owned Brazilian subsidiary, Navegantes Maritime Construction and Services, has entered into an agreement with Brazil’s TWB Group to acquire the Estaleiro TWB shipyard in Navegantes, Santa Catarina.
• This 7.6-ha shipyard will be operated by Keppel O&M’s specialised shipbuilding arm, Keppel Singmarine. It has a 300-metre long waterfront and is equipped with a slipway, pipe and hull shops and an outfitting quay. Keppel O&M’s total investment in the yard, including further capital expenditure to upgrade and modernise the facility, will be in the region of about US$50 million.
• The new yard is expected to be operational by the second half of 2010. At full capacity, it is estimated to be able to complete an average of eight vessels a year.

Author's Note
Previously Petrobras has announced plans to charter some 147 locally-built Offshore Support Vessels over the next five years. The new shipyard will help Keppel to meet the demand for works to be carried out locally in Brazil.

Financial News - 13 APR 2010: DBS signs up to be major tenant at MBFC Tower 3

DBS signs up to be major tenant at Marina Bay Financial Centre Tower 3. See news.


Key Points

• DBS will occupy more than half the available office space (700,000 square feet out of 1.3 million square feet).
• Tower 3 is 55 per cent pre-committed at the moment.
• Tower 3 is slated to receive its Temporary Occupation Permit by the second quarter of 2012.     

Author's Note
Previously it was reported that phase one of MBFC, which include Towers 1 and 2, has been fully leased. See Financial News - 7 APR 2010: Keppel Land - MBFC phase one fully leased.


More Information about MBFC at www.mbfc.com.sg.

Financial News - 7 APR 2010: Keppel Land - MBFC phase one fully leased

Keppel Land: Marina Bay Financial Centre (MBFC) phase one fully leased ahead of completion. See report.

Key Points

• Barclays Capital, the investment banking division of Barclays Bank PLC, is leasing an additional ten floors at MBFC.
• Prudential Asset Management (Singapore) Limited has signed on to lease approximately 37,000 sq ft of space in MBFC’s Tower Two.
• MBFC Tower Two is now fully leased except for a small percentage of space reserved for existing tenants’ expansion.
• MBFC Commercial Tower One has attained the TOP in March, with Marina Bay Residences attaining TOP within the next two weeks. MBFC Commercial Tower Two will have its topping out ceremony on 13 April 2010 and its TOP expected in Q3.

Author's Note
Marina Bay Financial Centre is a partnership of three of Asia’s major developers – Cheung Kong, Hongkong Land and Keppel Land. The full development will consist of three office towers and two residential towers. Phase one includes two office towers (Tower One and Tower Two) and the residential tower, Marina Bay Residences.

More Information about MBFC at www.mbfc.com.sg.

Stock Target Price - Updated TP for Keppel Land

Updated target price of Keppel Land by DMG.

Latest updates at Stock Target Price.

Financial News - 5 APR 2010: Dates for Keppel Group's First Quarter 2010 Financial Results

Dates for Keppel Group's First Quarter 2010 Financial Results. See report.

Date of Result Release:

• K-Reit Asia on 19 Apr 2010
• Keppel Land on 20 Apr 2010
• Keppel Corporation on 22 Apr 2010

Stock Target Price - KIM ENG raises TP of Keppel Corp

Updated target price of Keppel Corp by KIM ENG.
Maintains Buy, TP up from S$10.80 to S$11.07.

Raises sum‐of‐the‐parts target price mainly on the back of higher average selling price assumptions for its Keppel Bay  projects.

Latest updates at Stock Target Price.