Keppel Land

Keppel Land: Management notes that while sales progress remains sluggish in Singapore, the company plans to launch its Highline Residences project later this year. Management noted that it can afford to have a longer view on sales given its strong balance sheet. With moderating land tenders, it will look to acquire additional development sites in Singapore in 2014 and 2015. In China, management noted that YTD sales have also been slower than 2013, and expects this to be the case through 2014. Keppel Land remains positive on the Shanghai market, and believes that demand should remain firm for its Park Avenue project given its location and limited supply in the neighboring area. The company notes that distressed opportunities are starting to appear in China, and will look to add to its China land bank. Management believes that bidding for sites has become less exuberant and more opportunities will emerge. Strategically, management intends to increase its focus in China, and will concentrate on five key cities: Shanghai, Beijing, Wuxi, Chengdu and Tianjin. DB has a Buy rating with TP of $4.00.