Keppel T&T

Keppel T&T: 1Q13 results. Revenue at $37.0m, +10% yoy, due to higher revenue generated from Logistics and Data Centre Divisions. Consequently, operating profit increased 10% to $7.1m Net profit at $15.0m, +4% yoy, dragged by higher interest expense. In logistics, the group continues to focus on maintaining high occupancy rates and executing its major projects. During the quarter, the Wuhu Port in Anhui commenced trial operations after completing the first phase of construction. The Group has also secured a 2ha site in Tampines to develop an air logistics hub. Separately, demand for the Group’s data centre services remains strong. The data centre fund recently completed its second round of capital raising, making Keppel T&T the single largest shareholder. The Fund has acquired the remaining 50% stake in Citadel 100, a data centre in Ireland, marking its third European data centre in the portfolio. The stock trades at 13.1x annualized 1Q13 P/E, 1.74x P/B.