In january I wrote about how Keppel Corp was a great buy, over the past 3 months it has since gone up over 15%! and I have taken the opportunity to realize profits on half my position, with the remaining awaiting the juicy dividends of 36 cents on 22th april XD date.
As for its 1Q15 results, earnings rose 6% which is really pretty solid but revenues fell 6.1%. As expected the drag came from the marine segment which sale a sharp fall of 12% in earnings.
Keppel corp only managed to secure half a billion worth of orders in the first quarter... which is pretty slow... I expect full year 2015 orders to come in around 3 billion, definitely lower than last year.
What really saved keppel corp this quarter was its property segment, which earnings jump a whopping 16%! So much for management's decisive play to take kep land private, which I think the market saw as a very positive move strongly reflected by its stock price. The deal will increase KC's earnings per share, NAV and ROE but on the down side... we might see gearing getting higher to around 50% levels, which signifies greater risk.
STI has since crossed the psychological 3500 level, signaling a bullish market as the index touches a 7 year high!!! In early 2015 my portfolio was only trading at around 12 times earnings, and with the recent big gains the PE ratio has climbed to a more expensive 14.4 times. The gains mostly came from Banks (OCBC/UOB) and Marine related (STE,KC,SCI) ranging from 5-15% increase in stock prices in a short span of under half a year.
When it comes to 15 times earnings I would really wanna be cautious and start being more disciplined on my portfolio management,that could mean taking some profits on those that had a strong up run while re-balancing to maintain my 80% equities 20% cash ratio.
|UOB||24.02||0.750||3.1%||1.970||12.2||Banking and Finance|
|OCBC||10.90||0.360||3.3%||0.919||11.9||Banking and Finance|
|Semb Corp Industries||4.78||0.160||3.3%||0.443||10.8||Marine/Utilities|
|Portfolio Yield||Portfolio PE|