Keppel T&T: 1Q15 net profit climbed 2.3% y/y to $15.8m, while revenue dipped 1.6% to $47.9m, as lower revenue from Data Centre division was offset by higher revenue from Logistics Division.
Operating profit fell 15% to $6.3m (operating margin narrowed 2.1ppt to 13.1%) from the absence of contribution from the two data centres disposed in Dec, partly offset by fixed asset disposal gains.
Bottom line was buoyed by a 9.4% growth in share of associates’ and JV’s driven by the 30.1% stake in Keppel DC REIT, in which the data centres were divested into last year.
Net gearing stood at 0.5x.
Going forward, earnings should be buoyed by new logistics centres as they come on line. The new Tampines Logistics Hub began operating in the quarter, and had received healthy demand. The Vietnam Singapore Industrial Park 1 is partially fitted out and is operational, while the distribution centre in Tianjin Eco-city is near completion.
Meanwhile, Keppel Datahub 2’s occupancy rate is 60% and ramping up steadily. The Almere Data Centre 2 in Netherlands is expected to commence operations in 3Q15, and should also contribute.
Keppel T&T is currently trading at 17x annualized 1Q15 P/E.
Latest broker ratings:
CIMB maintains Add with TP $2.05
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