KE Report 18 Oct 13

Keppel Corp: O&M Margin Surprises Positively; Maintain Buy TP $12.33     
                                                   KEP SP | Mkt Cap       
  USD15.7b | ADTV USD31.3m                                                 
                                                                           
  �  Maintain Buy, TP raised to SGD12.33. 3Q13 core PATMI came in at 20%   
  higher YoY at SGD403m. Results were above expectations with 9M13 PATMI of
  SGD1,161m making up 80% of our previous FY13F forecast and 78% of       
  consensus. O&M segment was the key contributor but Property segment also 
  contributed strongly due to profit booking for China projects.           
  �  3Q13 operating margin for O&M turned up sequentially to 16.5%,         
  confirming our view of a margin uptrend. The magnitude of the turn       
  however was higher than expected and this was attributed to (1) several 
  jackups at completion stage and (2) efficiency gains from repeat         
  execution.                                                               
  �  YTD order wins have reached about SGD5b with outstanding orderbook at a
  record of SGD13.6b. We continue to see strong demand for offshore orders 
  that would support our positive view on the rigbuilders.                 
                                                                           
  Click here for full report                                               
  yeakcheekeong@maybank-ke.com.sg