Keppel Land   

Kepland

TA charts indicate that this counter may have topped out for now.

 

DBS Vickers released their research today , revising 12-month target price to S$10.83 ( previous S$9.87)

 


www.dbsvickers.com

Refer to important disclosures at the end of this report

Keppel Land
Strong at home and away

Story: Maiden contributions from The Sixth Avenue
residences and Marina Bay Residences boosted earnings for
Keppel Land's 1Q07 results. Net profit grew by 72% to 62.5m
for 1Q07, which were within expectations.
Point: Moving forward, we expect strong earnings from
Marina Bay Residences and Reflections at Keppel Bay to
contribute significantly for the next 2-3 years at the associates'
level. With sales of Naga Court project adjourned and over 50%
of Reflections to launch beyond FY07, this could signal
developers such as Keppel Land are still positive that residential
prices would continue the uptrend, in line with our Overweight
call on the residential sector. Positive news flow is expected
within the next few weeks with plans for MBFC phase 2 to be
unveiled and upcoming launches of new projects.
Relevance: With recent share price weakness, we see value
emerging from the stock. We are raising the premium from 10%
to 20% on current RNAV of S$9.02 to factor in further
confidence of upside from Keppel Land's focus into regional
property development. With further inroads expected into high
growth markets eg. Vietnam, we are raising our target price for
Keppel Land to S$10.83. Upgrade to Buy with 27% upside.
Strong earnings performance from Singapore projects boost earnings.
For its 1Q07 results, Keppel Land delivered strong topline growth of
148% with recognition of sales from new project The Sixth Avenue
Residences, supported by progressive revenue recognition from
existing projects both in Singapore and overseas. Overall, maiden
contributions from Marina Bay Residences with S$28.7m recognised at
the associates level and The Sixth Avenue Residences are the main
drivers for strong bottomline growth by 72% to 62.5m for 1Q07, which
are within expectations. The strong showing for Singapore projects
resulted in overseas earnings reducing to 28% from 53% comparatively
in 1Q06. Moving forward, we expect strong earnings performance
from Singapore residential development for Keppel with Marina Bay
Residences and Reflections at Keppel Bay to contribute significantly for
the next 2-3 years.
The party is not over yet. Previously, Keppel Land was looking to
launch sales of the Naga Court site (999-year LH, 62 units) at Duchess
Road, alongside new projects the Crest at Cairnhill, The Tresor as well
as remaining units of Parc Infinia at Wee Nam and Reflections at
Keppel Bay for the rest of FY07. Based on the latest update, Keppel
Land is adjourning sales of Naga Court beyond next year, in addition
to about 50% of units at Reflections at Keppel Bay. This signals
positive sentiment from market players, in line with our Overweight
call on the residential sector.


BUY S$8.50
STI : 3,362.68

(Upgrade)
Price Target : 12-month S$ 10.83 (Prev S$ 9.87)
Reason for Report : 1Q07 Results
Potential Catalyst : Finalisation of plans for BFC phase 2,
roll out of Singapore residential project sales and regional
expansion for property development
 

 

 from Reuters

Singapore's Keppel Land Q1 net profit up 72 pct

SINGAPORE, April 25 (Reuters) - Keppel Land (KLAN.SI: Quote, Profile , Research), Singapore's third-largest property developer by market value, on Wednesday reported a 72 percent surge in first-quarter profit on stronger luxury home sales and higher office rents.

The firm, partly owned by government-linked conglomerate Keppel Corp (KPLM.SI: Quote, Profile , Research), said it earned S$62.5 million ($41.4 million) net profit in the January-March quarter this year, up from S$36.3 million in the same period last year.

Keppel Land has a 40 percent stake in K-REIT Asia (KASA.SI: Quote, Profile , Research), a property trust which has a portfolio of four office buildings in Singapore.

 

SINGAPORE (XFN-ASIA) - Macquarie Research Equities said it has downgraded its rating on Keppel Land from "neutral" to "underperform" as the stock is currently trading at more than 25 pct to its fair value of 7.50 sgd per share.

"We believe Keppel Land is the best proxy to the bullish office sector in Singapore. However, the share's strong outperformance more than reflects the optimism," Macquarie said in a note to clients.

Strong demand for prime office space, with rents at historically high levels of 10.90 sgd per square foot per month in the Raffles Place area, will underpin earnings for Keppel Land in the next two years, it said.

Higher prices of its residential projects, particularly that of Reflections at Keppel Bay, which will be launched next month, will also boost earnings.  Macquarie expects Keppel Land 's net profit to rise from 200.3 mln sgd last year  to 231.1 mln this year, and 327.4 mln next year.

At 4.10 pm, Keppel Land was up 0.15 sgd or 1.62 pct at 9.40 with 2.12 mln shares traded.

 

Hi, I have shorted through CFD KepLand when it was at 7.50 hoping the price will decline, bit now it has risen to about 9.00.

Can someone please advise if I should continue to hold or close the position.?

Thanks and have a nice day.

 

anyone know why Keppel Land in downtrend now?

 

price now $7, gues my instinct is right. hehe :)

 

downtrend for keppel land? hmm.......i'll be going in soon. hopefully my gut feel is right. my instinct tells me it will still go up. :)

 

Urge caution on Kepland.... chart shows a downtrend

 

thank you jackjames.  So has your landlord entered position already ?

 

The date is Jan 4, 2007. Venue at Singapore Art Musuem... interested? can just go and peek at those rich people buying at cheaper price, very sien lei.....

 

rickytan, target price $6.77 is not impossible as you look at the price now... OKAY, listen up guys.. breaking news!!! My landlord got a private invitation to Keppel Bay Phase II launch in mid of January. His advise is to buy KEPPEL RIGHT NOW.. and throw the stock immediately after the news of Phase II launch... ( He expect the response will be as good as marina bay condo , also owned by Keppel, that is why the share goes up so high.. but, it can go higher if this condo project success in middle of january, it is not known in the public yet!!!!!!) Buy before the news come out! But then... guess what, I just bought a HDB today... I am the slave of the banking loan from next year onwards, shit... really no money to play stocks liao lei..

My landlord stratergy now, is buy and throw when it hit 9% earning, because singapore market is bullish and you never know when the correction comes.. so, he is taking profit when the price is right.

 

over take cap land with 3 bids gap

 

KE recommend  "sell" as price has exceeded price target of $4.38 whereas Citigroup recommend "buy" and raised target price to $6.77 ? Such great differing views ?

 

Citigroup raised its target price from $5.80 to $6.77 on rising office rental rates.



If prime grade A rental rates go to $12psf by end 2007, capital vlues would be $2375psf and this would imply an RNAV of $6.77.



Citigroup is raising its FY07 and FY08 earnings to reflect the higher selling prices for Marina Bay Residence and Keppel Bay.

 

Now STI has pushed past 2700 because of properties and financial stocks. IT seems the properties is over price, a lot is call to sell or turn from previous buy to hold, such as CityDev and Kepland etc. The only one is Capland because our Temasek is standing firm on it, I guess. So be careful and for those who make profit, just do not be greedy. Good Luck.

 

KE has downgraded its rating to "sell" from "hold", saying the stock price has exceeded the brokerage firm's target of $4.38.



"Keppel Land's share price has surged ahead of our valuation and target price over the past month. As such, we are downgrading our recommendation to 'sell'," KE said in a note, adding that the recent strong gains in the share price had factored in positive earnings prospects.



KE expects the property developer's net profit to rise from $155.7m  in 2005 to $185.4m this year, $220.1m next year and $244.4m in 2008.



Earnings will be underpinned by strong residential property demand as well as rising office rents, it said.

 

3Q results are out. How does it compare with market expectation? 



SINGAPORE - Singapore's Keppel Land reported on Wednesday a 16 per cent rise in third-quarter profit, helped by stronger Singapore home sales.



Net profit increased to $38.5 million (US$24.5 million) in the three months ended September, compared with $33.2 million in the same period last year.

 

Signs of reversal imminent still there.... RSI, Acc/Dist and Chaikin all pointing down

 

DBSV said it has upgraded its rating to "buy" from "hold' and lifted its target price to $6.15 from $4.32 previously as it sees the company becoming the prime beneficiary of rising office rents here.



"As rising office rentals are likely to provide a lead up to a surge in office capital values, we see more potential upside for asset revaluation of Keppel Land's office portfolio," DBSV said in a note to clients.



"Given that Singapore office rentals are still trailing behind other markets, with current rental levels only 40% that of Hong Kong, we see room for upside," it added.