SINGAPORE (July 20): DBS Group Research continues to favour Keppel as a safer proxy to ride the O&M (Offshore & Marine) recovery, given its multi-pronged businesses. Reiterate “buy” with target price tweaked to $9.00 or 1.3 times FY18F book value.
Keppel’s 1H18 results were boosted by property en bloc sales and Nassim Woods revaluation gain. On top of 10 cents interim dividend, the company also declared a special dividend of 5 cents, which lifts full-year DPS projection to 27 cents.
Keppel’s huge historical land bank of 6.5 million sqm is also held at a low cost, says DBS, and half of the land bank is currently under development, progressively realising its RNAV over the next 3-5 years.