Keppel T&T   

Still all about M 1

Without the exceptional items of past years (partial divestment of M 1 in '02, sale of vessels in '03/04), KTT's 1Q06 profit is flat at $9.78m, and that again is made possible by the strong contribution from M 1. And it is the M 1 stake, currently worth $298.7m or 54.4c per KTT share, which will provide strong support to the price. KTT's book NTA is 40c per share. KTT's logistic business in Foshan, China, is not going as well. Network engineering is satisfactory. Assuming unchanged dividend of 4c per share, net yield is unattractive at 2.7%.