Keppel T&T

Keppel T&T: 3Q Rev at $34.3m +22.0% yoy -0.8% qoq with net profit at $13.5m -62.1% yoy -5.2% qoq. Higher yoy sales was attributed to higher occupancy of data centres and warehouses but net profit was down due to absence of contributions from Wuhu Annto Logistics.. For 9M2012, the Logistics division continued to be the main sales contributor at $65.7m approx 75.8% share of rev. CIMB downgrades to Underperform from Neutral, cuts TP to $1.20 from $1.29 on higher costs and lower M1 contributions. Is of view that valuations are too rich for its near-term growth.