FY 2010 Annual performance of Keppel Corp and SembCorp Industries

Annual performance of Keppel Corporation is compared against SembCorp Industries’ in this post.

Keppel Corporation

Net Profit $1.42 billion (up 12%)
ROE   22.3%
EPS    88.7 cents
Total cash dividend per share  42 cents (47.3% of EPS)
Dividend yield 3.68% (based on 25 Feb share price of $11.42)
PE ratio 12.87 times

Keppel Corporation is proposing bonus issue of 1 share for every 10 shares held. This will reduce Keppel Corporation’s share price with no real additional cash benefit. The share price per share will decline technically to $10.38 after bonus issue (based on $11.42 share price before bonus issue). Investor will then own 1.1 shares as a result at $10.38 per share.

SembCorp Industries

Net Profit $792.9 million (up 16%)
ROE   22.2%
EPS     44.4 cents
Total dividend per share 17.0 cents (38.3% of EPS)
Dividend yield 3.47% (based on 25 Feb share price of $4.90)
PE ratio  11.04 times

Both companies performed credibly. Return on Equity (ROE) were nearly the same at 22.2% and 22.3%. Keppel Corporation is more generous with dividend proposal, giving out 47.3% of earnings per share as cash dividend. Its dividend yield is higher also at 3.68%.

At Friday’s closing share prices, Price to Earnings (PE) ratio was higher for Keppel Corporation at 12.87 times, whereas SembCorp Industries’ was 11.04 times. Investors perceived more value for Keppel Corporation.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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1 Response to FY 2010 Annual performance of Keppel Corp and SembCorp Industries

  1. limkimtong says:

    As long you are a shareholder, you should be entitled to bonus shares declared of any company. In the case of Keppel Corp, it is now trading WITHOUT this Bonus Share. This means that when you buy Keppel Corp now, you will not have the bonus share.

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