Keppel Corp

1Q 2019 result is out! A drop of 40% for net profit to 203m. EPS also drop 40% to 11.2 cents. PE is about 15x. I think price is on the high side .

Divestment gain of 174m.
Net profit of 203m less 174m,  I think actual profit is 29m after less divestment gain.

 Gearing is on a high side at 72%.
9.7b term loans. Let say an interest of 3.5% , estimate is about 339.5m . yearly interest..

 FCF is negative. I think This is really a concern with such a huge amount of negative FCF.

 I think price has run up too much and too fast! Is about time for it to correct !


Let's see how would market reacts come Monday!

 Not a call to buy or sell.

 Pls dyodd.