Company Reports

Singapore-based Keppel is an alternative asset manager and operator with SGD 106 billion of funds under management as of end-June 2026. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Singapore-based Keppel is an alternative asset manager and operator with SGD 106 billion of funds under management as of end-June 2026. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Keppel Ltd.'s first half of 2026 net profit attributable to shareholders fell 59% year on year to SGD 155 million, primarily due to impairment losses on its legacy rig portfolio and other noncore losses.

Keppel’s net profit declined slightly year on year in the first quarter of 2026, as strong earnings from infrastructure and connectivity were offset by lower real estate contributions. Nevertheless, recurring income rose, supported by improved operating earnings and higher asset management fees.

Keppel's 2025 net profit (excluding the noncore portfolio earmarked for divestment and discontinued operations) rose 39% year on year to SGD 1.1 billion. The group declared a special dividend of SGD 0.13 per share, in addition to a final dividend of SGD 0.19 per share.

Singapore-based Keppel is an alternative asset manager and operator with SGD 95 billion of funds under management as of end-December 2025. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Keppel's first nine months' net profit rose over 5% year on year, despite an accounting loss from the M1 divestment. The group announced plans to formalize a new dividend policy, anchoring payouts to annual net profit—departing from its historically more stable dividend approach.

Singapore-based Keppel is an alternative asset manager and operator with SGD 91 billion of funds under management as of end-June 2025. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Keppel is divesting M1 Limited for an enterprise value of SGD 1.4 billion. Excluding certain carved-out businesses and assets, the implied 2024 EV/EBITDA is 7.3 times.

Keppel's net profit attributable to shareholders rose 24.2% year on year to SGD 378 million, driven by higher contributions from its real estate segment, partially offset by softer performance in its infrastructure and connectivity segments.

We retain our fair value estimate of SGD 8.60 per share for Keppel, as the latest business update contained no major surprises. Excluding legacy offshore and marine assets, net profit increased by over 25% year on year, driven by stronger asset management performance and improvements in its real estate segment. We believe Keppel remains undervalued and expect it to continue to demonstrate resilience even amid global trade tensions, given its strategic focus on essential services such as infrastructure, connectivity, and data centers.

Singapore-based Keppel is an alternative asset manager and operator with SGD 88 billion of funds under management as of end-2024. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Singapore-based Keppel is an alternative asset manager and operator with SGD 88 billion of funds under management as of end-2024. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Keppel’s 2024 net profit of SGD 940 million was largely in line with our expectation. While its infrastructure and real estate segments registered slight declines in earnings of 4% and 3% year on year respectively, this was more than offset by the 45% growth in net profit for its connectivity segment. The strong growth in its connectivity segment was driven by higher asset management fees and fair value gains from investments in its listed REIT and data center assets.

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.

Keppel’s first-half 2024 net profit was dragged down by its legacy offshore and marine assets, resulting in a 31.6% year-on-year decline to SGD 304 million. The losses from the legacy assets relate to the fair value losses of its Seatrium shares, the Asset Co vendor notes, and Keppel’s stakes in Floatel and Dyna-Mac. Excluding these, net profit rose 7% year on year, driven by higher contributions from its infrastructure and connectivity segments, partly offset by its real estate segment. We cut our 2024 earnings per share estimate by 14% after factoring in losses from its legacy assets and have adjusted our 2025-26 EPS estimates lower by 3%-5% after reducing our forecasts of share of profits from associated companies and joint ventures.

Singapore-based Keppel is an alternative asset manager and operator with SGD 68 billion of assets under management as of end-2023. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

We transfer coverage of Keppel, with a no-moat rating and raising our fair value estimate to SGD 8.60 per share from SGD 8.40, after tweaking our operating income margin slightly higher. Based on the current price, we think the shares are undervalued and expect positive developments in its asset monetization plans and growth of its fund management platform to drive share price performance.

Singapore-based Keppel is an alternative asset manager and operator with SGD 68 billion of assets under management as of end-2023. Currently, the group generates most of its income from its infrastructure segment, where it invests and operates in a portfolio of infrastructure assets such as renewable energy assets, natural gas power plants, and water and wastewater treatment plants. The group also has a real estate segment where it operates mainly in Singapore, China, Vietnam, Indonesia, the US and Europe. Under this segment, the group builds and sells residential units, and invests in income-producing investment properties for rental income. As for its connectivity division, the group operates data centers and owns M1, a telecommunications company in Singapore. Lastly, the group manages listed and unlisted investment funds spanning all three segments for management fees.

Keppel is a Singapore government-linked conglomerate previously best known as the leading semi-submersible rig builder for the offshore industry. However, the downturn in the energy industry has led to a change in Keppel’s strategy. We think the privatizations of Keppel Land in 2015 and M1 in 2019 were timely and help the firm to boost cash flow to offset its struggling offshore and marine, or O&M, segment. Keppel’s future business will be less dependent on the O&M business following the completion of the combination of Keppel O&M with Sembcorp Marine in February 2023.