Singapore and China property trading gains even partially backed the 214% net profit jump to $603m.
Keppel's property portfolio was almost untouched from the property curbs as Singapore only accounted for less than 10% of its diversified segment, OCBC Investment Research said.
In fact, the property segment was the largest gainer for the group in H1 2018 as its net profit skyrocketed 214% YoY to $603m. The firm attributed the increase mainly to the en bloc sales of development projects and a fair value gain on an investment property which has been designated for redevelopment for sale.
Singapore and China property trading also backed the gains. Keppel announced that it will continue expansion in high growth cities across Asia.
Also read: Keppel Q2 profits up 44.4% to $246.16m
Meanwhile, DBS thinks that Keppel’s land bank of around 6.5m sqm has been held at a low cost.
“Half of the land bank is currently under development, progressively realising its RNAV over the next 3-5 years,” DBS explained. “Of its remaining undeveloped land bank, 40% is for development projects in Tianjin Eco-city.”
The bank said that the Tianjin Eco-city, as well as the ongoing portfolio rebalancing exercise, could “unlock values of completed projects”.
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