SINGAPORE (June 8): OCBC Investment Research is maintaining its “buy” call on Keppel Corporation with a fair value estimate of $7.36, on the belief that the counter is well-positioned to ride on a property upturn.
In a Thursday report, lead analyst Low Pei Han notes that the general outlook for property markets in Asia remains positive in the long-term on the account of continuing urbanisation.
“Despite property cooling measures in selected cities in China, the group sold over 3,800 units and handed over some 3,480 units in 2016. Sales in China contributed to about 65% of the total 5,720 residential units that Keppel Land sold in 2016. In Singapore, Keppel sold 380 units, double the 190 units in 2015. With its landbank of 1.3m sq ft in prime locations, Keppel is well-positioned to ride on a recovery in the residential market when it occurs,” comments Low.