This company is currently very undervalued. At $1.36, its trading at a PE of 13.x and a forward PE of less than 10. They have a key 20% stake in M1.
They recently divested of an investment for a book profit of 30million SGD. Their earnings revenue are due to jump due to increase business activities in their Foshan Ports. Their Data Center business is also operating at 100% occupancy. All in all, a solid positive cashflow and revenue generating company!
To compare, CWT is currently trading at a PE of 17 while Freightlinks is trading at a PE of 41. Datat enter Companies listed in the US trade at a PE of more than 40times
If we peg the fair value of Keppel TT at a forward PE of 17, the price should be $2. Infact, earnings for this year is likely to hit between 80 - 100 million thanks to the divestment and the growing, ports, data center and logistic business. This would translate to Earnings Per Share of between 13.5 to 16.8.
To summarise, the company is in a unique position such that all of its investments and business activities are in a sweet spot this year. M1 is likely to report a better profit in this financial year, the Data center will continue to generate higher operating cashflows and the Logistic and Ports business will deliver better profitability due to expansion in business activities in the markets they are located.
Last edit: 13 years 7 months ago by gempicker22. Reason: update for results announcement
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