SINGAPORE - Stay up to date on market chatter with our picks of the latest broker research reports, compiled by The Straits Times Money Desk.

1. Keppel Corp

Broker: OSK-DMG

Keppel announced that the contract which it has entered into with Golar LNG to perform the world's first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel (FLNGV) on 25 June 2014 has become effective. This contract is worth approximately US$735 million, bringing Keppel's order wins YTD to $3.15 billion, on track to meet our $6.5 billion forecast for the year.

The FLNGV will take about 31 months to convert and is expected to be completed in the first quarter of FY2017. Golar has options for another two similar units, which could be worth another $1.8 billion.

According to the Douglas-Westwood World FLNG Market Forecast, the global Floating Liquefied Natural Gas (FLNG) industry is expected to attract over US$65 billion of investments through 2020. Asia-Pacific has been singled out to draw the majority of investments in this sector with its strong pipeline of regasification and liquefaction projects.

We continue to maintain our Buy recommendation on Keppel with a $12.50 target price. We see Keppel's strong design capabilities yielding long-term competitive advantages. Key risks would include a slowdown of global gas projects amid burgeoning cost pressures in both the floating and onshore LNG industry.

2. Frasers Centrepoint (FCL)

Broker: CIMB

FCL has confirmed its 100 per cent takeover offer for Australand (ALZ) after close to a month of due diligence. The offer price is at A$4.48/stapled security, which values ALZ at 1.2 times net tangible assets. FCL will fund the total consideration of A$2.6 billion (S$3.1 billion) with a combination of external loan and internal funding.

Additionally, we expect value creation to come from ALZ's residential and industrial landbank, with a gross development value of $8.8 billion and $2.1 billion respectively.

While net gearing post the transaction is expected to be high at 1x, we believe that FCL will be able to lower it to about 0.7x by monetising industrial assets from ALZ.

We maintain our Add call as we believe that the transaction makes sense. Our target price of $2.09 and earnings per share forecasts remain unchanged as we have not yet factored in the takeover.