Brokers' take

Keppel Corp > Buy RHB Research Institute, July 21 July 21 close: S$6.58 Target price: S$7.34

KEPPEL registered core earnings of S$251 million for 1H-17, coming in below our and consensus estimates. Property and offshore and marine slowed down in Q2-17, but we believe these two segments would start to pick up in 2H-17, as both segments would start to deliver more projects. Recurring income coming from the infrastructure segment and investments would continue to provide support to earnings.

For 1H-17, 36 per cent of its net profit came from a recurring income base, mainly from Reits and trusts, asset management, infrastructure services, operations and maintenance, as well as rental and charters.