PE fell from 45X to 19X in two trading days.

Keppel T&T's second-largest shareholder, Kapital Asia sold 2.658 million shares on Friday, 26 Sep 2008 at $4 to $3.50, according to an announcement Keppel T&T made on SGX.

The company believes the fire sale arose due to force selling on Kapital Asia and the fund’s substantial shareholders (Agus Anwar and Marcel Tjia).

Investors may be tempted to buy the stock in hope of a rebound in time to come as no significant changes were reported on the underlying business fundamentals.

However, Keppel T&T’s price earnings now at about 18x (based on yesterday's close price of S$1.65) remains rich by standards of the current market sentiment.

Consider: even current market valuation on Keppel Corp, its blue chip conglomerate parent, is much lower at a historic PE of 10.5x.

	Price	Market Cap	1H08 Sale	Operating Margins	07PE
KepT&T	S$1.65	S$911m	S$61.8m	10.3%	18X
CWT	S$0.50	S$287m	S$285m	7.2%	7.5X
M1	S$1.82	S$1.6bn	S$409.3m	25%	10X

Main earnings driver is still its stake in local telco M1.

Even after the sell-down, Keppel T&T still has a market cap of close to $1 billion.

Yet, there is no direct analyst coverage on the 80%-owned subsidiary of Keppel Corp.

Here is a summary of its operations:

Integrated Logistics Service Provider

Keppel T&T’s integrated logistics services include international sea freight forwarding, port operations as well as related services such as trucking, airfreight and rail.

Its wholly-owned subsidiary, Keppel Logistics, owns Foshan Lanshi Port, a Grade II national port in China with all the requisite government bureaus located within the port.

The port has space for 6 berths totaling 370 m, and is able to handle 1000-dwt barges.  Its handling capacity is 2 million tons per annum, including 200,000 TEU containers.

Other shipping related services include a container yard, 40,000 sq m of warehousing space, customs inspection and declaration, as well as ship agency.

1H08 sales of S$61.8m was mostly from its logistics subsidiaries.