KepLand enjoyed strong sales of township homes in China for 1H09, having sold 1,440 units in Chengdu and Wuxi. The management feels that positive sentiment is spilling over to the luxury- end segment. Over in Vietnam, KepLand has resumed sales at The Estella, selling about 30 units in May with the ASP kept at US$2,000 – 2,200 psm.
Leveraging on improved sentiments in the Singapore private property market, KepLand managed to reduce its inventory of completed properties, by selling 26 units at Park Infinia in 1H09 (avg $1,400 psf) and 28 units at the Tresor (avg $1,350 psf). The management now targets to launch the Promont at Cairnhill and Madison Residences at Bukit Timah in 2H09, opting to further defer the relaunch of Reflections at Keppel Bay and Marina Bay Suites.
With the rights-issue gross proceeds of about $708m, KepLand would be on the look-out for investment opportunities. The management said KepLand will consider opportunities spanning the various segments in the Singapore market. It also recently announced the joint-acquisition of a 36.8-ha site in the Tianjin Eco-City, with total capital investment at around $148.5m. KepLand will own a 55%-stake in the township development, capable of yielding about 5,000 homes.
KepLand’s local landbank looks set to benefit from the Integrated Resorts and its overseas projects appear to have resumed their sales momentum. We have raised our FY09-10 forecasts by 12.4% and 12.8% respectively. Maintain our BUY recommendation at a target price of $3.19, pegged at a 10%-discount to FY10 RNAV.
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