KeppelCorp: Contract wins continue to flow in, with grp announcing that its O&M unit has secured 2 new contracts (Ship Building Division) worth total $170m. One contract is for completing a pipe-laying vessel from Saipem, with work starting at end 1Q11 and completion by mid-2012. The other is for converting a tanker into a FPSO for Bumi Armada, where work has already begun with completion by 2H11….
Result brings YTD order wins to a whooping $4.1b, additionally, Keppel has granted options for 15 rigs which have yet to be exercised. Given that we are less than 3mths into the yr, Keppel looks well placed to exceed Street forecasts of ~$7b worth of orders for FY11. Share price may re-rate upwards if order momentum continues. Street has a unanimous Buy Call on Counter with a $13.50 TP…
IIFL Reiterates Buy call on latest contract win with $16.96 TP, tipping $10b of new orders in 2011, surpassing the previous peak orders of $7.4bn received in 2007. This will manifest into 30% core earnings growth in FY12 and FY13. Expect the offshore & marine business to dominate group earnings (78% in FY12) and urge investors to skip their conglomerate discount.
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