OVERVIEW:
The subsidiary of Keppel Corp, is a leading service provider in Southeast Asia and Europe with businesses in logistics and data center. In logistics, it offer one-stop, integrated solutions to help clients manage their entire supply chain. It owns and operates data centers across Asia Pacific and Europe, providing dedicated co-location suits with technical support.
HIGHLIGHTS:[1] Its latest result saw revenue in last night month lower by 4% at $148m year on year. Operating profit was lower by $9.7m as well. It was mainly due to absence of revenue from two data center assets disposed last year to Keppel DC REIT in which the counter is having shares.
[2] As compared to same period last year, logistics division's revenue increased by 9% and data center drop 30%. Investment division achieved comparable results.
[3] The warehouse at Tampines Logistics Park commenced operations in 2Q2015 with occupancy rate > 60%. Tianjin Eco-city distribution center and Lu'An logistics park in China shall begin operation by early next year.
[4] The counter is on track to divest one of its data center asset to Keppel DC REIT in 2016. The disposal gain is projected to be ~S$65m.
INVESTMENT THEMES:[1] The counter is trading with P/E at 3.22x which is considered heavy discount.
[2] When existing assets turn into fully operational, the income shall be rising significantly. Due to its growth prospect, CIMB rated the counter >1.9
[3] The price has been falling heavily since mid of the year but without any panic sell among major shareholders. Price movement is sable upon latest announcement of poor result. Most negative concern seems to have factored in price. Mid to long term investor could take position now. Harvest time shall be on 2016.
ENTRY PRICE:Accumulate now
*** Note: Same counter has been mentioned in May[1] ***
No comments:
Post a Comment