Chinese projects to boost Keppel's earnings by at least 60%

Chinese projects to boost Keppel's earnings in 2018

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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