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  Bookmark this page   Tuesday, 28 Jul 2015
 
Today's Headlines
Keppel Corporation: A soft quarter

Keppel Corporation reported a 19.3% YoY fall in revenue to S$2.56b and a 2.3% decrease in net profit to S$396.7m in 2Q15, such that net profit accounted for 45% of our full year figure, below ours and the street’s expectations. Operating margin for the O&M division was lower at 13% in the quarter, vs. 14.7% a year ago. A deliberate slowdown in the construction of rigs in Brazil as well as deferment of certain rig projects (outside Brazil) also impacted revenue in the quarter. However, what was more surprising was the continued poor performance from the infrastructure division which saw significant impairments in the quarter. To date, new order wins totaled about S$1.5b vs our full year forecast of S$2b, and management still expects its yards to remain busy in the next two years. However, taking into account the weaker-than-expected results, we tweak our earnings estimates and lower our SOTP-based fair value estimate from S$9.22 to S$8.41. Maintain HOLD.

 
  Market Pulse
Market Pulse: Sheng Siong, Raffles Medical, DBS, SingPost (27 Jul 2015)
Market Pulse: Suntec REIT, Keppel Corp, SATS, OSIM, Sheng Siong, FCOT, CCT (24 Jul 2015)
Market Pulse: FCT, A-REIT, CMT, HPHT, ART, SATS (23 Jul 2015)
Market Pulse: MIT, MLT, CMT, KepCorp, Vard, TigerAir (22 Jul 2015)
Market Pulse: Property Sector, M1 (21 Jul 2015)
Market Pulse: Consumer Sector, NOL, Cosco (20 Jul 2015)
Market Pulse: ST Engineering (16 Jul 2015)
Market Pulse: SMRT, Soilbuild REIT, CMT, Oil & Gas sector (15 Jul 2015)
Market Pulse: SPH REIT, Capitaland, Singapore GDP (14 Jul 2015)
Market Pulse: Ezra Holdings (13 Jul 2015)
  Research
Keppel Corporation: A soft quarter
Keppel Corporation reported a 19.3% YoY fall in revenue to S$2.56b and a 2.3% decrease in net profit to S$396.7m in 2Q15, such that net profit acc ...
Suntec REIT: Cloudy earnings visibility
Suntec REIT reported a 19.6% YoY increase in its 2Q15 gross revenue to S$81.4m, underpinned by the opening of Phase 2 of Suntec City mall in Jun 2 ...
SATS Ltd: Looking for more overseas investments
SATS Ltd’s (SATS) 1QFY16 results were broadly in-line with our expectations as core PATMI grew 8.5% YoY to S$47.1m. Despite a 4.2% YoY decline in ...
OSIM International: Room for disappointment
OSIM International Ltd (OSIM) saw another weak set of 2Q15 results, albeit it was within our expectations. Revenue fell 13% YoY to S$159.5m, formi ...
Hutchison Port Holdings Trust: Decent growth but below expectations
2Q15 PATMI came in at HK$399.9m, up 8.5% YoY mostly due to good cost-side management and the positive impact of tariff increases, partially offset ...
CapitaLand Mall Trust: Drag from asset repositioning
CapitaLand Mall Trust’s (CMT) 2Q15 results met our expectations. Gross revenue slipped 2.9% YoY to S$159.6m, with the main drag coming from IMM (A ...
 
 Strategy
Property Sector: Urge caution on S-REITs; reallocate to high-end and growth themes
Against the backdrop of an impending Fed lift-off and declining sector DPU growth, we believe the risk-reward of the S-REITs sector has turned unf ...
Consumer Sector: Expect similar drags in 2Q
Following recent data updates on retail sales growth in our selected countries, we think that concerns highlighted during 1Q remains pertinent in ...
Oil & Gas: Lifting of Iran sanctions and related plays
A Joint Comprehensive Plan of Action regarding Iran’s nuclear program could be reached as early as tonight, paving the way for the lifting of sanc ...
Market: Sector Updates – OVERWEIGHT Banking and Land Transport
OVERWEIGHT Banking and Land Transport ...
MARKET: Greek and Fear?
Greek and Fear? ...
Healthcare Sector: Valuations running high
While our local bourse has been rather lacklustre, the healthcare sector has been largely rewarding as the FTSE ST Health Care Index (FSTHC) has d ...
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