Keppel Corporation

[Layman A]

Very agressive target price by Nomura.


Keppel Corp kept at ‘reduce’ by Nomura, target price unchanged at $7.64
By Jeffrey Tan / theedgemarkets.com | July 24, 2015 : 11:24 AM MYT
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SINGAPORE (July 24): Nomura says Keppel Corp is “likely” to face difficulties replenishing its order backlog due to a weak outlook of new orders amid a global oversupply of jack-up rigs.

As at end-June, the diversified entity’s offshore & marine (O&M) segment order book stood at $11 billion, down from $11.3 billion in the preceding quarter.

New orders secured year to date fell to $1.5 billion from $5.6 billion last year.

“Order book replenishment remains a concern amid industry downturn,” Nomura analysts Chong Wee Lee and Abhishek Nigam write in a note on Friday.

But they note Keppel Corp has secured a third order from Golar worth US$684 million ($938 million) to convert a Moss type LNG carrier into a GoFLNG facility, subject to certain conditions being fulfilled in September.

The analysts add that revenue recognition at the O&M division is likely to be slow until the payment issue with Sete Brazil is resolved.

Nomura kept its “reduce” rating for the stock with an unchanged target price of $7.64.

At 11.03am, Keppel Corp added 1 cent or 0.1% to $8.17 on some 15.9 million shares traded.


http://www.theedgemarkets.com/en/node/218021

[greengiraffe]

http://www.valuebuddies.com/thread-5541-...#pid117026

[butcher]

How to hedge my current investments in Keppel Corp at $8++?

Buy Put Warrants or?

[CityFarmer]

It is likely Keppel will maintain the dividend payout of 48 cents per share, or 6% @ $8.

(not vested)

Keppel kept at ‘buy’ with lower $10 target price by RHB

SINGAPORE (July 28): RHB is maintaining its “buy” rating on Keppel with a lower target price of $10 from $10.90 as offshore and marine core remains strong while the property segment outperformed with a spike in launch pipelines since 1Q15.

In a July 27 report, RHB says management highlighted that revaluations, major impairments and divestments (RIDs) are recurring items, forming about 21% of annual PATMI for the last five years.

It also stated that RIDs “are available to us in terms of funding dividend payouts.”

Analyst Lee Yue Jer interprets this as a strong hint that the dividend is sustainable, given that the sale of the Keppel Merlimau Cogen plant has released about $1 billion of cash.
...
http://www.theedgemarkets.com/sg/article...-price-rhb

[greengiraffe]

http://www.kepcorp.com/en/news_item.aspx?sid=414

https://www.tradewindsnews.com/weekly/17...ely-to-fly

http://listofcompanies.co.in/keppel-fels-ltd/

The above are real deals as the upcycle in the global O&G went on an extended run since then that probably peaked around 2013.

The old guards had good eyes for value creation.

http://www.bloomberg.com/news/articles/2...d-shares-1-

I am not too convince over this deal... now it turns out to be a classic when "they cannot convince you, they confuse you" - its a band aid solution but new team is not to be blamed as they have not seen a dramatic down cycle like this...

GG was blooded when I started out in the 90s... they are probably some newbies starting out on a scholarship and have been riding a charted path...

GG's bold prediction - the blood will be seen when the marine arms Kepcorp and Semcorb Ind head for a merger to cut fixed costs in a major restructuring of local GLC linked marine industry.

Odd Lots Vested
KepCorp, SCI, Sembmarine

It is likely Keppel will maintain the dividend payout of 48 cents per share, or 6% @ $8.

(not vested)

Keppel kept at ‘buy’ with lower $10 target price by RHB

SINGAPORE (July 28): RHB is maintaining its “buy” rating on Keppel with a lower target price of $10 from $10.90 as offshore and marine core remains strong while the property segment outperformed with a spike in launch pipelines since 1Q15.

In a July 27 report, RHB says management highlighted that revaluations, major impairments and divestments (RIDs) are recurring items, forming about 21% of annual PATMI for the last five years.

It also stated that RIDs “are available to us in terms of funding dividend payouts.”

Analyst Lee Yue Jer interprets this as a strong hint that the dividend is sustainable, given that the sale of the Keppel Merlimau Cogen plant has released about $1 billion of cash.
...
http://www.theedgemarkets.com/sg/article...-price-rhb

[greengiraffe]

http://www.valuebuddies.com/thread-5541-...#pid117130

[greengiraffe]

http://infopub.sgx.com/FileOpen/Keppel%2...eID=364160

1 conversion and 3 repair business S$125m - now also been announced... can see how serious the whole situation is...

[weijian]

http://infopub.sgx.com/FileOpen/Keppel%2...eID=364160

1 conversion and 3 repair business S$125m - now also been announced... can see how serious the whole situation is...

Not entirely true. I noticed that Keppel has the tendency for publicity which includes releasing PRs that say that XXX rigs are delivered on time.

In general, KCL likes to publish everything big and small on their books. I looked through a sample of 2013-mid 2014 (the days when rigs were still been ordered) and those small small orders are also publicised:

http://infopub.sgx.com/mwg-internal/de5f...kKxN2k,&dl

http://infopub.sgx.com/FileOpen/PR_27Feb...leID=20888

http://infopub.sgx.com/FileOpen/PressRel...leID=23652

http://infopub.sgx.com/FileOpen/Media.Re...eID=287826

[greengiraffe]

http://infopub.sgx.com/FileOpen/Keppel%2...eID=364160

1 conversion and 3 repair business S$125m - now also been announced... can see how serious the whole situation is...

Not entirely true. I noticed that Keppel has the tendency for publicity which includes releasing PRs that say that XXX rigs are delivered on time.

In general, KCL likes to publish everything big and small on their books. I looked through a sample of 2013-mid 2014 (the days when rigs were still been ordered) and those small small orders are also publicised:

http://infopub.sgx.com/mwg-internal/de5f...kKxN2k,&dl

http://infopub.sgx.com/FileOpen/PR_27Feb...leID=20888

http://infopub.sgx.com/FileOpen/PressRel...leID=23652

http://infopub.sgx.com/FileOpen/Media.Re...eID=287826

thanks for the clarifications... I seldom track Keppel so may have been too overwhelmed.

GG

[CityFarmer]

http://infopub.sgx.com/FileOpen/Keppel%2...eID=364160

1 conversion and 3 repair business S$125m - now also been announced... can see how serious the whole situation is...

It is always better to announce them, rather than keeping silence, to avoid technical trap. We will never know, it may be significant enough to retail investors. The cost is negligible to Keppel, with a fixed cost per announcement.

(not vested)