Keppel: Driving Growth Through Infrastructure and Data Center Businesses

We retain Keppel's fair value estimate of SGD 8.60 per share after an in-line third-quarter 2024 business update. No detailed numbers were shared in the update, except that the group’s cumulative nine-month net profit was stable after excluding the effects of legacy offshore and marine assets. Management also highlighted a 14% year-on-year growth in recurring income over the same period, driven by higher contributions from asset management and operating income. We think the shares are undervalued and the group is well-positioned to ride on strong secular growth trends in the infrastructure and data center markets.