Friday, January 21, 2011

Keppel Tele&Tran

Keppel Tele&Tran: Reported a steady set of FY10 results, despite Grp rev decreasing $107.8m, -5% YoY due mainly to the winding down of non-core businesses and lower logistics rev in Singapore partly offset by rev from data centre business. Operating profit improved significantly by 49% to $12.4m due to additional contribution from the data centre business and better operating margins as a result of cost control measures…

Over all Net Profit at 60.7m, +27.4%Yoy, contributed by higher operating profit and share of profits from associated companies…

Going forward, Grp expects stable warehouse occupancy and growing demand for 3PL services and is pursuing opportunities to expand into new customer segments and warehouse locations. Group is actively looking to grow overseas, especially in China, where its port in the Pearl River Delta continues to operate at full capacity, as well as Vietnam….

We note that at current levels, valuation appears undemanding, with grp trading at 13.7x trailing PE vs its historical average of 24.1x. Grp has further announced a first and finanl dividend of 3.5c/share (2.5%) yield for the FY10.

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