Keppel Land expected to post S$240m profit in 4Q13

Watch out for China market performance.

According to Maybank Kim Eng, Keppel Land will likely post a 4Q PATMI of around S$240m, which includes a S$149m net gain from the sale of its stake in Jakarta Garden City.

"More pertinently, we will be looking out for sustained home sales momentum in China," said the research firm.

Looking forward, Maybank Kim Eng said Keppel Land's reduced exposure to the Singapore residential segment is valuable.

Meanwhile, Keppel Land's peers are in the proces of divesting Singapore-based commercial assets such as OUE Bayfront and Westgate Tower.

"We think this is a sign of capital values peaking and if Keppel Land succeeds in divesting its one-third stake in MBFC Tower 3 this eyar, we believe the sale will be positive for the share price," said Maybank Kim Eng.
 

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