Thanks to its projects in Wuxi and Tianjin.
Keppel Corporation’s (Keppel) property earnings will largely come from China, as profits from property trading in the country can grow 60-85%, UOB Kay Hian said.
According to an analysis, this will primarily be driven by phased project launches from Tianjin Eco-city and secondary contributions from projects in Wuxi.
Moreover, if it manages to sell its projects in non-core cities in China, Revalued Net Asset Value (RNAV) could rise by 15 cents to $5.66 per share.
China's property cooling measures implemented earlier this year have impacted Keppel’s home sales.
This was most apparent in 3Q2017, where homes sales fell 48% YoY.
"However, its projects still retain pricing power, with prices remaining flat despite the measures. Sales continue at a steady clip, though the coming quarters will reveal whether this remains the case," said UOB Kay Hian analyst Foo Zhi Wei.
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