Can Keppel’s property segment continue lifting the firm's sinking profits?

It’s now the biggest contributor to Keppel’s bottomline.

Keppel’s offshore and marine segment was the primary drag in the firm’s bottomline, but analysts think the property segment remains the lone bright spot in its earnings.

According to a report by OCBC, the Chinese property market remains healthy in the key cities where KEP operates, despite the tightening of cooling measures in a few Tier 1 cities.

“About 86% of the group’s homes sales in 1H16 were in China, especially Chengdu, Wuxi and Tianjin,” OCBC said.

Meanwhile, Keppel expects contributions from 3,400 units of overseas homes sold to be recognised as the homes are completed from 2H16 through 2018.

“The group also has close to 18,500 launch-ready homes in its pipeline from now through 2018, most of which are in China, followed by Vietnam,” the report added.