ANALYSTS SAY: Buy, Sell, Hold (14 Dec)

Keppel Corp (S$5.18, down 6 cents) announced that Keppel Asia
Infrastructure Fund LP (KAIF) and a co-investor of KAIF, through Cloud
Alpha Pte Ltd, are acquiring a 51% equity interest in Cleantech Renewable
Assets Pte. Ltd. (CRA or Cleantech) for up to US$150 million. The remaining
49% of the equity interest in Cleantech is held by its exisƟ ng shareholder,
Shell Eastern Petroleum (Pte) Ltd. (Shell), which will conƟ nue to support
its future growth in the region. 

At $5.18, market cap of Keppel Corp is S$9,430mln, trailing 12-
mth P/E is 28.6x, dividend yield is 3.7% and its current P/B is 0.8x.
According to Bloomberg consensus, there are eleven buy and one sell
recommendations and the average of the various analysts’ target price
on Keppel Corp is $6.68, representing a potential upside of 29.0%.

Koufu Group (KOUFU SP)
Positioned For Sequential Recovery 

Despite revenue weakness in 3Q21 (-20% vs pre-COVID-19 levels) due to prohibitions
on dining in, we expect Koufu’s performance to improve sequentially due to: a) dining
in prohibitions being relaxed in late-Nov 21, and b) further reopening with more VTL
arrangements. On the other hand, business in Macau remains uncertain due to China’s
tight border control but is expected to improve once Macau opens up. Maintain BUY
and target price of S$0.77 (17x 2022F PE).

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MAYBANK KIM ENG

LIM & TAN 

Sapura Energy (SAPE MK)
9MFY1/22 results came in
below

TP cut to MYR0.03; reiterate SELL
9MFY1/22 results continued to disappoint, on wider QoQ losses,
continuously affected by higher opex and Covid-19 challenges. SAPE
remains vulnerable for its negative mix of stretched balance sheet, tight
cashflows, legacy contracts, poor execution & continuous cost overruns,
which are affecting its ability to recover. There is also a greater need to
restructure its operations. Assets divestment is imperative. We cut FY22-
23 earnings, not expecting a return to the black over our forecast period. 

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China Everbright (S$0.31, unchanged) announced that it was awarded
the Award of Excellence in Corporate Governance and the Award
of Excellence in ESG (Environmental, Social and Governance) under
the category for newly-listed companies in the Hong Kong Corporate
Governance and ESG Excellence Awards 2021 (the “Excellence
Awards”), which is jointly organised by the Chamber of Hong Kong
Listed Companies and the Centre for Corporate Governance and
Financial Policy of Hong Kong Baptist University.

He added, “By providing long-term and quality water environment
services, we strive to promote simultaneous enhancements in
economic, environmental and social benefi ts across various regions,
in the pursuit of our core value of ‘Creating Better Investment Value
and Undertaking More Social Responsibility’ and our corporate
mission of being ‘Devoted to Ecology and Environment for a
Beautiful China’.”