DBS Research is initiating coverage on K-Green Trust, be listed on Tuesday, 29 Jun, with HOLD and TP of S$1.20.
Its sponsor is Keppel Integrated Engineering, the wholly owned environmental engineering arm of Keppel Corp. KGT’s assets generate stable, long-term cash flows. The initial portfolio consists of two Waste-to-Energy (incineration) plants as well as a water recycling (NEWater) plant in Singapore, with concession terms ranging from 15 - 25 years. Its zero debt balance sheet will enable growth.
However, growth pipeline is limited at this point. Given the historical trading ranges of peers, our analyst believes KGT could trade between 6-8% target yield, which would imply a share price range of S$0.98 – S$1.30.
This blog is a selections of my investment views to my client. If you find it useful or have additional information to share, please do let me know. These blogs are my personal views and is not meant to solicit any sales or investment on any securities or investment. I may have vested interest in some of the counters or investment products, hence please invest at your own risk. As usual invest in what you understand and do your own homework. ML is a licensed stockbroker with one of Asia Leading Stock Broking firm. To contact him, please email: icewolfmike@gmail.com
No comments:
Post a Comment