Short-Term Investment: Keppel Land

Sector: Properties

Background Information:
Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property.

With beginnings that date back to 1890, Keppel Land is today a leading property development company in Asia recognised for its premier residential developments and investment-grade commercial properties, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia with a current focus in Singapore, China, India, Vietnam, Indonesia and Thailand.

The Company is one of the largest listed property companies by total assets on the Singapore Exchange. It is part of the MSCI Singapore and FTSE EPRA/NAREIT indices. Keppel Land’s return on equity is among the highest in the property industry in Singapore.

Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, the Company has continued its expansion drive in the housing sector into new countries, cities and segments.

It has also embarked on developing large-scale residential townships in the region to tap on the demand for quality housing from the growing middle class population. The Group has a pipeline of more than 20,000 homes in residential townships across China, Indonesia and Vietnam.

In another step to unlock value for shareholders, Keppel Land is setting up K-REIT Asia, a real estate investment trust with an initial portfolio of four prime office buildings valued at $630 million. Apart from redeploying capital tied up in its investment buildings into development projects which provide quicker returns, K-REIT Asia will enlarge Keppel Land’s platform to generate fee-based income, in addition to the funds which have been established under its property fund management vehicle Alpha Investment Partners.

Projects:
Partnership with Modernland to develop residential township in Jakarta

Leaders:

Chairman: Lim Chee Onn
-Chairman of Keppel Land Limited, MobileOne Ltd, and Singapore-Suzhou Township Development Pte Ltd
-Board Member of the Monetary Authority of Singapore and k1 Ventures Limited
-Honorary Chairman of the National Heritage Board
-Deputy Chairman in the Advisory Board of the Harvard Singapore Foundation
-Elected as Member of Parliament in July 1977

Managing Director: Kevin Wong King Cheung
-Managing Director of Keppel Land Limited since January 2000
-Prior to this appointment, he was Executive Director since November 1993
-Chairman and Director of Keppel Philippines Properties, Inc., Chairman and Director of Keppel Thai Properties Public Co Limited, and Vice-Chairman and Director, Dragon Land Limited
-Director of K-Reit Asia Management Pte Ltd, Singapore Hotel Association and Singapore International Chamber of Commerce.
-Experience in the industry working with companies in the UK, USA and Singapore.

Secretary: Choo Chin Teck

Data (as of 2008-03-31):
Current Ratio: 2.667
Closing Price (as of 2009-03-12): $1.00
Debt to Equity Ratio: 1.079
Dividend Cover: 5.414
Dividend Per Share: 0.200 SGD
Dividend Yield: 15.385%
Net Tangible Assets Per Share : 3.181 SGD
Price Earnings Ratio: 1.200
Return On Equity: 34.028
Return On Total Assets: 12.749
Market Capitalization: $0.77181B
Net Profit: $0.77965B

Reasons to Buy:
a) High dividend per share
b) High RoE
c) Management in favourable position
d) Possible greater share prices following more investors to fuel further growth
e) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
f) Projects spread worldwide ensures that corporation will reap profits and minimize losses during current economic downturn
g)RSI below average = Undervaluation during current economic crisis = Possible huge profits through long-term investments

No of Shares Bought: 7000
Entry Price: $1
No Shares Shares Sold: 7000
Exit Price: $1.04
Profit: $219.21

Sources:
www.sgx.com
www.cimbinvest.com
Keppel Land 2007 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho