- Keppel Corporation (SGX:BN4)'s 1Q23 revenue only rose marginally by 3% y-o-y, excluding the divested offshore and marine division. Urban development led the growth, driven by higher home sales in China and India. Net profit was only slightly higher.
- - Read this at SGinvestors.io -
- Downgrade Keppel Corporation to ACCUMULATE with a lower target price of S$7.01, from S$7.21 previously.
- - Read this at SGinvestors.io -
The Positives
Urban development led the charge with 16.7% gain in sales.
- Keppel Land recorded 72% higher home sales to S$740mil, underpinned by strong China (+2.8x y-o-y to 830 units) and India (+1.8x y-o-y to 800 units). It has increased focus on trading projects, which have faster turnaround and require lower working capital. About S$280mil was raised from the disposal of 3 assets in the Philippines, Myanmar and Vietnam.
- We believe Keppel Land remains the key earnings driver. It accounted for 44.8% of Keppel Corp's FY22 net profit.
Higher sales of power, renewables and energy-related services under a subscription model.
- Read more at SGinvestors.io.
