Keppel Land: reports FY11 results on 19 Jan.
JPM expects KepLand to deliver FY11E revenues at $911m (+15% Y/Y) with core net profit at $381m, +50% from FY10 core net profit at $253m. Also expects the group to reflect revaluation gains from K-REIT Asia stake in 4Q11 along with divestment gains of $492.7m on OFC sale. Forecasts end FY11E book value to rise to $3.44/sha whilst end FY11E gearing would fall to 23%, benefitting from the OFC transaction. Tips special dividend announcement likely, following OFC divestment proceedings; pencils a FY11E total dividend yield of 7.3%.
The house maintains Neutral rating, rolls over TP of $2.85, set at 48% discount (1std dev below historical avg discount) to FY12E RNAV.