Kepland

Kepland
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3A18EF3E99263B824825792E003204CF/$file/3.KLL.3Q2011.Presentation.pdf?openelement

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3A18EF3E99263B824825792E003204CF/$file/2.KLL.Announcement.3Q11.pdf?openelement

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3A18EF3E99263B824825792E003204CF/$file/1.KLL.3Q.Press.Release.pdf?openelement

Published October 20, 2011

Keppel Land Q3 net profit up 6.6% Rise helped by drop in taxation. Sales fall 14% to $111.7 million By UMA SHANKARI HELPED by a sharp drop in taxation, Keppel Land ended its third quarter with a 6.6 per cent rise in net profit to $57.97 million - from $54.39 million a year ago.

The property group saw a 14 per cent year-on-year drop in sales to $111.7 million for the three months ended Sept 30, 2011. This was more than offset by a 31.5 per cent fall in costs of sales, resulting in a 4.9 per cent rise in gross profit to $65.64 million.

But profit before taxation fell 4.7 per cent or $3.24 million to $65.57 million as administrative and other expenses surged 84.2 per cent or $15.72 million to $34.4 million. Keppel Land said this 'was due mainly to higher staff costs and a higher foreign exchange loss reported in YTD 3Q2011, partly offset by the higher costs being capitalised as part of the project costs'.

A 68.2 per cent or $8.14 million drop in taxation helped raise net profit - excluding $3.8 million in minority interests - to $57.97 million, up 6.6 per cent.

Earnings per share rose to 4 cents from 3.8 cents in Q3 2010.

The quarter saw the property group book more income from its Reflections at Keppel Bay project and also earned higher fund management and acquisition fees. But group sales fell as a lower turnover was reported by its property trading segment.

For the first nine months of 2011, Keppel Land reported a net profit of $191.8 million - down 25.1 per cent from $256.1 million a year ago. The fall could have been bigger if not for a one-off gain of $24.4 million from the disposal of Keppel Digihub.

Revenue rose 3.5 per cent to $573.8 million from $554.4 million.

Keppel Land sold about 420 homes in Singapore in the first nine months of this year, helped by its residential project in Sengkang, The Luxurie, which saw a take-up of 86 per cent of the 250 units launched in August. Overseas, it sold more than 1,600 homes in the first nine months of 2011, with a take-up of almost 900 units in the third quarter.

The developer on Monday announced that it will sell its 87.5 per cent interest in Ocean Financial Centre (OFC) to its listed office trust K-Reit Asia for around $1.57 billion.
The group's net debt-equity ratio rose to 0.46 at end-September 2011. But with the sale of the OFC stake, the gearing will fall to about 3 per cent - which the developer has said will boost its financial capacity for acquisitions.

Keppel Land shares gained 4 cents to close at $2.73 yesterday.

BT


DBS Vickers Research Report
http://www.remisiers.org/cms_images/research/Research-Oct17-Oct21_2011/kpld191011_buy_DBSV.pdf

Revenue............................842...........924...........792.........953..........1,936

Cost of Goods Sold.........(532)........(602).........(472)......(550).......(1,392)

Gross Profit......................310...........321............320.........403...........544

Other Opng (Exp)/Inc.......(79).........(120)..........(97).......(107)........(112)

Operating Profit................232...........202............223.........296...........432

Other Non Opg (Exp)/Inc 0 0 0 0 0

Associates & JV Inc..........68............164............176..........221..........267

Net Interest (Exp)/Inc........(1)............(7).............(8)..........(18)..........(10)

Exceptional Gain/(Loss)....15............(1).............790............0..............0

Pre-tax Profit....................314...........359..........1,180.........499...........689

Tax...................................(45)..........(59)..........(123)........(110)........(159)

Minority Interest...............(42)..........(19)...........(15)..........(25)..........(23)

Preference Dividend 0 0 0 0 0

Net Profit..........................228...........280..........1,043..........365..........508

Net Profit before Except...212............281............253...........365.........508

EBITDA............................309............376...........408............526.........708

If OFC divestment gain is included, net profit could rise to $858m

Growth

Revenue Gth (%) (40.2) 9.7 (14.2) 20.3 103.2

EBITDA Gth (%) (25.6) 21.4 8.7 28.9 34.6

Opg Profit Gth (%) (25.8) (12.9) 10.4 32.9 45.8

Net Profit Gth (%) (41.8) 23.2 272.0 (65.1) 39.3

Margins & Ratio

Gross Margins (%) 36.9 34.8 40.4 42.3 28.1

Opg Profit Margin (%) 27.5 21.9 28.1 31.1 22.3

Net Profit Margin (%) 27.0 30.4 131.7 38.3 26.2

ROAE (%) 9.6 9.6 27.2 8.2 10.4

ROA (%) 3.7 4.4 14.0 4.5 5.9

ROCE (%) 3.9 3.1 3.1 3.2 4.4

Div Payout Ratio (%) 25.3 33.0 25.0 59.0 29.5

Net Interest Cover (x) 225.9 30.2 26.2 16.9 45.5

Source: Company, DBS Vickers

RNAV Breakdown

Spore properties OMV ($m)

Equity Plaza..............................................................279.1

OFC redevt (based on $2600psf)............................1571.3

Surplus from MBFC 2 devt (based on $2600psf).....393.9

Residential and overseas assets

Spore......................................................................1630.0

China......................................................................1135.4

Indonesia..................................................................534.3

Vietnam....................................................................601.1

India...........................................................................66.8

Others.......................................................................267.2

NPV of devt profits

Spore........................................................................657.7

China........................................................................799.3

Vietnam......................................................................29.9

Others.........................................................................83.5

Attrib value of Kreit @ TP of $1.32........................821.2

Value of fund mgmt business @ 12x.........................321.0

GAV........................................................................9191.7

less total liabilities..................................................1092.6

RNAV......................................................................8099.1

No of shares.................1453.2

RNAV/share ($)...............5.57

Kim Eng Report
http://www.remisiers.org/cms_images/research/Research-Oct17-Oct21_2011/KLL20102011KE.pdf

 

Income Statement (S$ m)
FY Dec............................2008A......2009A.....2010A.....2011F......2012F