Keppel Corporation

Keppel Corporation: OCBC maintains Buy with $12.87 TP. The house note that Keppel has secured new orders worth about $4.9b YTD, close to the house original forecast of $5b. With good order momentum that is supported by prospects in the O&M sector, the house increase new order win forecast to $6b for this year, while keeping $6.75b target for FY14F unchanged for now. KEP also recently announced that it will jointly develop, own and operate a yard facility in Mexico, in line with its “Near Market, Near Customer” strategy that it has always believed will put it in good stead to win new orders, especially with increasing focus on local content requirements. Besides more orders expected from Mexico, also look to other growth areas such as West Africa, the Caspian Sea and the Gulf of Mexico.