Keppel Land eyes launching more units at The Botanica in Chengdu in 2H13

The Springdale in Shanghai may be on track too.

According to Nomura, KPLD plans to launch more units at The Botanica in Chengdu and The Springdale in Shanghai during 2H13 to ride on the robust demand seen in 1H13. The Glades in SG is also scheduled to be launched soon.

While KPLD has traded at an average premium of 16% to its book since 2001, it appears the market has been reluctant to ascribe a premium to its book since 4Q11.

Here's more from Nomura:

We believe the case is strong for the stock to be valued at a premium to its end-June book value of SGD4.06/share because valuing the fast growing fund management business at P/E of 10x would add SGD0.31/share to book, based on our estimate.

Secondly, valuing MBFC Tower 3 at SGD2,556psf would add SGD0.13/share to book, based on our estimate. Lastly, profits from substantially sold Singapore projects yet to be recognised would add SGD0.11/share to book, based on our estimate. 

While the market may be concerned with potential write-down of KPLD’s residential land bank, our estimates suggest that any impact is likely to be limited, considering at least 46% of its land bank book value can be said to have been acquired at a relatively cheap cost.