KepCorp

KepCorp: +2.0% at S$10.81, the best-performing STI component, after it said it may convert up to three liquefied-natural-gas vessels into floating LNG vessels for Golar LNG.DMG view the move positively and the award highlights the strength of Keppel in the conversion space. A successful conversion of a FLNGV could potentially lead to more such projects. House believe the shipyard value for the FLNGV could be as much as US$500m, depending on the scope of work, especially the procurement portion. House keeps a Buy call with $13.80 TP. The stock's 10-day moving average around $10.86 may offer a cap.