Keppel T&T

Keppel T&T: 2Q Rev at $28.4m +4.2%yoy,-6.2%qoq net profit at $17.6m+27.8%yoy +26.7%qoq. Profit improved qoq mainly from better operating results from Data Centre segment, after acquisition of Digihub in 1Q2011, as well as Investments due to gain in associates and disposal of fixed assets. As last reported, the Investment Division holds a 19.7% stake in M1.The improvement yoy was attributed to higher rev from Data Centre segment after acquisition of Digihub.

Co is expanding its logistics business in China and Vietnam concentrating on logistic properties and warehousing space. Other developments include its Securus Data Property Fund setup in 2010 which co is a joint invt mgr to invest in data centre assets. 2Q EPS at 3.2c with annualized 1H P/E at 13.2x.

CIMB maintains Outperform at $1.61 up from $1.57 with potential re-rating catalysts from accretive data centre acquisitions and faster-than-expected penetration into China. DBS maintains Buy with TP$1.65, on as-expected results.