Keppel Corp

Keppel Corp: Nomura maintains Buy with $13.20 TP. House met Keppel Offshore and Marine management today during a shipyard tour with investors. Key discussion points: 1) continued order strength in Jack-ups and Semi-subs; 2) competition from Chinese and Korean yards is not a key threat near term as house note established operators continue to primarily use Singapore yards given proven execution capabilities. Margin guidance was maintained at ~10-12%, although house believe there is potential upside from higher orders for conversions/upgrades and owndesign vessel deliveries. With undemanding valuations and an attractive dividend yield of 4.5%, house reiterate its BUY rating.