Keppel T&T

Keppel T&T: KPTT delivered a strong set of results in 2Q13, with earnings driven by higher occupancy in its data centres. Its subsidiary acquired a second port in Foshan, China, and we believe this new acquisition and the current logistics projects in China will help to build its core earnings.2Q net profit of $16.4m was above expectations due to strong data centres contribution. Overall, CIMB maintain O/p Call with a higher SOTP of $1.64. Catalysts could come from an increase in data centre occupancy and the opening of two logistics parks in China in FY14-15.