Keppel Land

Keppel Land: 1Q13 results inline to above expectations. Net profit at $96.6m, -32% yoy, -39% qoq, though the decline was expected as substantial units from Reflections sold under the Deferred Payment Scheme was recognized in 1Q12, although the decline was partly offset by better profits from investments (K-Reit, MBFC Phase 2) and fund mgt. In Spore, ~60 units were sold, mainly from The Luxurie (now fully sold with ASP ~$1050 psf), and the remaining from Reflections and Marine Bay Suites. Meanwhile, sales in China continued to strengthen, with 850 units sold in 1Q13, up from 690 units in 4Q12 and 190 units in 1Q12. Going forward, mgt plans to launch its latest 366 unit luxury project Corals @ Keppel Bay later this yr, as well as its 726 unit project in Tanah Merah. In overseas mkts, Keppel Land plans to launch 3716 units in China, and 766 units in other mkts. Mgt expects demand in China and Spore to remain steady on account of first time homebuyers, and with prices remaining stable. Maybank KE keeps at Buy with TP $4.78. believes the recent tie up with China Vanke could pave the way for more invmt opportunities in China. Deutsche reiterates Buy, lifts TP to $4.41 from $4.35, after marking to market the value of its listed subsidiaries and accounting for recent acquisition of Life hub @ Jinqiao, and sale of 30% stake in its Tanah Merah project to Vanke. Credit Suisse keeps at Neutral with TP $4.10, citing risk of policy overhang in Spore and China, which may disappoint sales targets.