Keppel Corp. (BN4.SG) is up 2.3% at $11.60 in active trade after its 4Q earnings beat the street, with net profit of $403 million, the first time the S$400 million mark has been breached.

Phillip Securities says the results were above its expectations; it maintains its Buy call and raises its fair value to $13.40 from $12.52 (on an increased valuation for O&M to 15X vs 13.5X FY11E). 

“We are optimistic on the outlook of Keppel for the next three years. Indeed, we expect Keppel to continue to win orders for the building of rigs from the major oil producers.” 

Says the company stands “a good chance of winning the bid to build some of the rigs from Petrobras.” The house adds though its property business may be affected by anti-speculation measures from the China and Singapore governments, “its Offshore & Marine, Infrastructure and Investments segments are likely to perform relatively well this year.” 

 

Immediate resistance is pegged at $11.70.