KepLand

KepLand will be releasing its 1H10 results on 20 Jul. Residential sales are expected to continue to underpin 2Q10 earnings. The group sold about 40 more units at the 221-unit Marina Bay Suites in Apr/May at ASP of about $2,600 psf. Sales of its overseas projects remain brisk, particularly in China where it sold more than 900 homes from 2 township projects, namely The Botanica in Chengdu and Central Park City in Wuxi in Apr/May. Initial launch of 900 units at Tianjin Eco-city is expected in 2H10

Positive catalyst includes the potential divestment of MBFC Ph1 to K-Reit while pre-leasing activities continue to gather pace at the MBFC Ph2 and Ocean Financial Centre. We have a buy Call with target price of $4.71.