Keppel    Last:6.5    +0.03

keppel Corp

i targeting 11.50 nia :)

yiming2000      ( Date: 02-May-2013 10:45) Posted: Friend Oly, if you hold three months, then I will keep you company and sell in June at target price of $11.80.

 

Friend Oly, if you hold three months, then I will keep you company and sell in June at target price of $11.80.

 

if looking long term Keppel definitely worth buying. i am preparing to hold at least 3 mths :)

 

 

Friend krisluke, the 56% profit drop is no big deal because it was due to large chunk of money  made last year. Top line still intact and so is profit margin for next few years. Let's hope investors come back in to supoort this counter so I can make my exit at $11.50.

 

 

Keppel's profits falls sharply
Keppel Corporation Ltd, the world's largest offshore oil rigbuilder, reported a 56% drop in quarterly net profit from S$751 million a year earlier to S$331 million after excluding one-off gains from the sale of Reflections at Keppel Bay. The management had previously highlighted in 2012 that the stellar results back then were unlikely to be repeated for 2013.

In 1Q2012, more than half of the profits came from its property segment whereas for this quarter, the bulk of profits came from the Offshore & Marine segment which accounted for 63%. Since 2000, Keppel Corp has delivered about half of the world’s jackups, the company reported. The current net order book stands at S$13.1b, with deliveries well into 2019.

Friday's closing price at $10.84 means the stock has declined about 6% since it reached $11.59 on 11 March 2013, which was within touching distance of a 5 year high at $11.69 on 28 April 2011.

New JV to harvest minerals in sea
Most recently on 22 April, Keppel Corp announced that its wholly-owned subsidiary, Ocean Mineral Singapore Holding has entered into a joint venture agreement with UK Seabed Resouces and Lion City Capital Partners on 19 April. The primary business revolves around the exploration and harvesting of rich minerals in seabed rocks. The company has pointed out that this transaction is not expected to have a material impact on the net tangible assets or earnings per share of the company for the current financial year.

Source: Macquarie Research - 29 Apr 2013

 

Last signed up for Kepcorp Camp was no joy ride -- cry cry tell myself 'smell' the dividends.   DieDie must set get out and set free. HK traders called it Harry Crap - being tied up and locked in refrigerator! The other NS camp was not better off either - 2 1/2 yrs sing your way out under hot sun.

Thank God for blessings, the slaveries (physical and financial) were over. Re-entry must be careful, No Play Play!

yiming2000      ( Date: 25-Apr-2013 11:23) Posted: Friend orangejuice01, two years was along wait in Kepcorp army camp. What was your entry price and how many lots imprisoned? I could end up like you.

 

Friend orangejuice01, two years was along wait in Kepcorp army camp. What was your entry price and how many lots imprisoned? I could end up like you.

 

 

Dividend play is a good reason to buy a stock, esp in low interest environment and excess liquidity.

Smart money knows where to go and when they leave they go with them great ROI. Some of my not-so-smart money sat in kepple waited for 2 years, a deep and long ride. It was the dividends that keep my insanity, it was like serving NS for $90/mth while the girls were ahead by 2 years.   Now ask if FT would like to serve NS, so as smart monies from overseas.      

yiming2000      ( Date: 24-Apr-2013 20:57) Posted: Friend krisluke, good info and analysis but most of us have short attention span with outlook horizon less than 2 years out and low risk tolerance.  Kepcorp has good fundamentals. I bought in for dividends and anticipated price drop after ex-date. Once price recovers, I will sell at target price around $11.50 hopefully within a month.

 

Friend krisluke, good info and analysis but most of us have short attention span with outlook horizon less than 2 years out and low risk tolerance. 

Kepcorp has good fundamentals. I bought in for dividends and anticipated price drop after ex-date. Once price recovers, I will sell at target price around $11.50 hopefully within a month.

 

   

Friend laopokca, never try to buy stock for dividends before ex-date. 99% of the time, stock price will drop after ex-date and wipe out dividends and even sink further. The juicer the dividends, the steeper the price drop after ex-date. The reason is because high dividend payouts are abnormal and won't be repeated following year. Therefore, investors lose interest after ex-date and stock price has no support.

 

Margin of 14.1% to 15% is consider better than AVERAGE in this sector. May be that was why Apple stock was chased up to 700 before coming down to 400. With AAPL with margin of 37%,   P/E < 10, dividends of 3%...broking fee for US stock is USD9.99 per trade... investors would load up into apple or google.  

Management Feels and Analysts Think! Things are very vague.

 

   

 

@Kris

Thanks! That will be useful. 

 

45 years. That is how long Keppel Corporation (KepCorp) has been in business for. As a local champion, much emphasis is placed on how the group fares. Hence, it is not much of a surprise that the counter faced some selling pressure after releasing less than stellar financial results on 18 April 2013.

To be sure, KepCorp’s 1Q13 financial report card was not expected to be as good as 1Q12. This can be put down to how KepCorp recognises revenue from its residential segment. Overall, KepCorp recorded a 52.5 percent drop in net profit from $750.8 million in 1Q12 to 1Q13′ s $356.9 million. Revenue slid 35.3 percent as KepCorp cited declines in work volume at its offshore and marine division, as well as a drop in revenue recognition from sales of its residential development, Reflections at Keppel Bay.

Nonetheless, KepCorp ’s management feels that the industry fundamentals continue to remain “compelling”. Do analysts agree? What do they think about KepCorp ’s 1Q13’s performance?

Parsing through several research reports, it seems that analysts are pointing to margins in KepCorp ’s offshore and marine sector. For example,

Low Pei Han and Chia Jiun Yang of OCBC note that KepCorp ’s management continues to be relatively “happy” with the operating margins of its offshore and marine sector. Margins for the sector stood at 14.1 percent, lower than 1Q12’s 15.1 percent but still an improvement from 4Q12’s 13.5 percent. They attribute this improvement partly to the fact that,

“… the group has been executing orders of similar designs, resulting in more efficiency after the initial learning curve.”

They also point to a bonus $5 million received due to early delivery of all five rigs in 1Q13.

Pei Han and Jiun Yang’s Call: BUY, with target price of $12.68 (potential upside of 12 percent*)

However, analysts from OSK Research, namely, Jason Saw and Lee Yue Jer, feel that KepCorp will begin to experience a normalisation of margins at its offshore and marine sector. They agree with KepCorp ’s long-term margin guidance of around 10 to 12 percent. They conclude that,

“… the normalising (offshore and marine) margins and property-cooling measures are likely to cap the re-rating process in the near term.”

That is to say that, due to the above factors, both Jason and Yue Jer feel that their calls on the stock are unlikely to be adjusted anytime soon.

Jason and Yue Jer’s Call: NEUTRAL, with target price of $11.21 (potential downside of 1 percent*)

On an even darker note, Lim Siew Khee of CIMB anticipates a steady decline in KepCorp ’s order book by end 2013. It is worthy to note that KepCorp experienced an explosion of orders during 2011 and 2012. As of 1Q13, KepCorp ’s order book stood at $13.1 billion, which includes about $1.7 billion worth of order wins during the quarter. She writes,

“Despite the decent order momentum for jack-up rigs (in 1Q13), order wins are unlikely to exceed the $10 billion achieved in 2011 and 2012 (respectively due to jack-up rig rush and Sete-Brasil’s orders). Therefore, the order book will decline to about $10 billion by end-(2013).”

Siew Khee’s Call: NEUTRAL, with target price of $11.90 (potential upside of 5.1 percent*)

Perhaps sensing that there might be a need to diversify its revenue streams into other fields, KepCorp recently announced a partnership with a seabed technology expert (UK Seabed Resources, a subsidiary of Lockheed Martin UK). The partnership will look into subsea mining, which carries the potential of harvesting superb quality minerals in huge amounts.

DBS Vickers’ Janice Chua and Ho Pei Hwa, however notes that subsea mining has become a point of interest in recent years. They point out that,

“It is too early to judge the new development as we are unsure of the viability of this project… It seems to be an exciting opportunity that could aid mid-to-long term growth of KepCorp , though it also comes with higher operational risks.”

Janice and Pei Hwa’s Call: BUY, with target price of $13.00 (potential upside of 14.8 percent*)

It might seem that the days of higher-than-average margins and profits might be over for KepCorp . However, KepCorp remains as a good way (and most analysts claim, the preferred way) to gain exposure to the oil and gas industry.

*Based on KepCorp ’s closing price of $11.32 on 22nd April 2013

 

Thanks for your swift reply!
Now whats left is to think of whether to sell my Kepcorp shares now or hold on longer..

 

by right yes.. to be safe, sell after the payable date.. (not on the date)

check ur cpd account for confirmation

MarioD      ( Date: 24-Apr-2013 13:51) Posted: Does anyone know when the Keppel REIT comes in? 8th May? Thanks for help!

 

Does anyone know when the Keppel REIT comes in? 8th May?
Thanks for help!

 

I realise everytime i buy dividend counters i end up losing more than the dividend payout even i hold prior quarterly statement .. Usually will struck for quite some time. Seen thread that ppl speculate abt dividend, was wondering what's the correct method to long for dividend yet after XD if i decide to sell i will not make a loss... Anybody can advise

 

thks rotijal....at least some cash coming in....good luck

 

if u bought yesterday and hold until today..

yes

if u just bought today,

no

dominiqueseahth      ( Date: 24-Apr-2013 09:14) Posted: pse advise i hv 2 lots of keppel corp.... do i get dividends from keppel corp as well as keppel reit thks

 

pse advise

i hv 2 lots of keppel corp....

do i get dividends from keppel corp as well as keppel reit

thks