Keppel Corp

Keppel Corp: Sales at its Corals at Keppel Bay have been decent. Close to all of the 100 units launched in the initial phase have been sold over its launch last weekend. The development has a total of 366 units. Prices for one- and two-bedroom units were at about $2,160-2,310 psf. This represents a 7-14% premium to the average 2013 transacted price of Reflections, and a 34-43% premium to the average 2013 transacted price of Caribbean. Demand was the strongest for the one-bedroom units due to limited supply in the vicinity, with the buyers an even mix between Singaporeans and foreigners. CS maintain its OUTPERFORM rating on Keppel and TP of $13.70, with the property business representing 19% of its SOTP valuation. This is based on Credit Suisse’s TP for Keppel Land (NEUTRAL, TP $4.10) and Keppel Bay RNAV estimate of $0.13 per share.