Keppel Infrastructure (A7RU) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 9.87%
• Average Volume (3M): 5.08M
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.45
• Revenue Growth: 8.76%
• EPS Growth: -74.16%
• Country: SG
• Employees: 16
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals - Specialty
• EPS (TTM): <0.01
• Shares Outstanding: 6,084,988,000
• 10 Day Avg. Volume: 4,902,910
• 30 Day Avg. Volume: 5,079,310
• PEG Ratio: 8.45
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.45
• Price Target Upside: 14.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ―

Keppel Infrastructure's stock score reflects a strong financial performance in terms of revenue and cash flow generation, but declining profitability and high leverage are significant concerns. Technical analysis points to bearish momentum, and while the valuation appears high, the attractive dividend yield provides some balance. The absence of recent earnings call insights or notable corporate events means these factors do not influence the overall score.

Positive Factors

Financial Performance

The Trust is trading at a healthy forward yield of over 8.5%, which is attractive compared to its peers and carries little downside risk in the near term.

Sustainability and Growth Strategy

KIT is leveraging a strategy focused on sustainability-linked infrastructure, which is seen as a secular growth trend.

Negative Factors

Operational Risks

Key risks include plants not meeting availability thresholds due to operational issues, increasing debt refinancing risks as assets age, and exposure to increases in inflation.

Keppel Infrastructure Business Overview & Revenue Model

Company Description

Keppel Infrastructure Trust is a listed business trust. The firm provides investors with the opportunity to invest in a large and well-diversified portfolio of core infrastructure assets located in jurisdictions with well-developed legal frameworks that support infrastructure investment. It aims to provide long-term, regular and sustainable distributions to its Unitholders. Keppel Infrastructure Trust was incorporated in 2007 and is based in Singapore.

How the Company Makes Money

Keppel Infrastructure generates revenue through a diversified portfolio of businesses centered around energy and environmental infrastructure. Its key revenue streams include the sale and distribution of electricity and gas to residential, commercial, and industrial customers. The company also earns income from its district heating and cooling operations, which involve providing temperature regulation services to urban developments. Additionally, Keppel Infrastructure benefits from its integrated waste management services, which include waste-to-energy plants and water treatment facilities. These operations are often supported by long-term contracts with government entities and private sector clients. Strategic partnerships and investments in sustainable technologies further bolster its revenue model, ensuring steady cash flows and profitability.

Keppel Infrastructure Financial Statement Overview

Summary

Keppel Infrastructure exhibits strong revenue growth and cash generation capabilities, which are tempered by declining profitability and high leverage. The income statement shows positive revenue trends but highlights challenges in maintaining profitability. The balance sheet indicates a heavily leveraged financial structure, which could limit future growth opportunities. The cash flow statement is a bright spot, underscoring the company's ability to generate sufficient cash to support its operations. Overall, while the company shows resilience in growth and cash generation, it needs to address profitability and leverage concerns to ensure long-term stability.

Income Statement

Keppel Infrastructure has shown consistent revenue growth in recent years, with a significant increase from $2.0 billion in 2023 to $2.2 billion in 2024. Gross profit margin improved from 38.7% to 52.0%, indicating better cost management or pricing power. However, net profit margin decreased from 6.9% to 2.7% due to a substantial drop in net income. The absence of EBIT in 2024 raises concerns about operational efficiency. Overall, the income statement reflects good revenue growth but declining net profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.01 in 2024, indicating significant leverage which could pose risks if not managed properly. The equity ratio stands at 27.1%, reflecting a moderate reliance on equity financing. Return on equity has decreased from 9.4% in 2023 to 3.6% in 2024, driven by lower net income. While the company maintains a stable asset base, high leverage could impact its financial flexibility.

Cash Flow

Keppel Infrastructure's cash flow statement reveals a strong operating cash flow of $306 million in 2024, translating to a healthy operating cash flow to net income ratio of 5.14. Free cash flow decreased slightly, but the free cash flow to net income ratio remains robust at 3.65. Despite fluctuations in investing and financing activities, the company demonstrates solid cash generation capabilities, supporting its operational activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.00B	2.21B	2.04B	2.01B	1.58B	1.55B
	Gross Profit
877.07M	1.15B	787.05M	698.71M	587.30M	614.00M
	EBIT
415.02M	190.89M	565.96M	104.28M	134.76M	115.35M
	EBITDA
394.29M	477.01M	454.19M	355.58M	287.26M	313.10M
	Net Income Common Stockholders
76.77M	59.59M	140.06M	-2.83M	23.80M	-52.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
475.16M	457.32M	479.23M	526.89M	809.75M	555.94M
	Total Assets
6.26B	6.19B	5.62B	5.96B	4.50B	4.93B
	Total Debt
3.66B	3.37B	3.63B	3.24B	2.07B	2.51B
	Net Debt
3.19B	2.92B	3.15B	2.71B	1.26B	1.95B
	Total Liabilities
4.57B	4.21B	3.83B	4.06B	2.76B	3.44B
	Stockholders Equity
1.42B	1.68B	1.49B	1.56B	1.71B	1.44B
Cash Flow		Free Cash Flow
369.12M	217.29M	238.17M	200.18M	210.67M	316.54M
	Operating Cash Flow
441.05M	306.23M	292.96M	244.60M	249.31M	345.53M
	Investing Cash Flow
-490.77M	-543.38M	-45.31M	-1.58B	-276.01M	-36.12M
	Financing Cash Flow
190.41M	201.71M	-296.15M	1.06B	283.71M	-206.31M

Keppel Infrastructure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A7RU, the sentiment is Negative. The current price of 0.39 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.40, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:A7RU.

Keppel Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A7RU	65 Neutral	$2.40B	36.79	3.22%	9.87%	8.76%	-74.16%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%
BTG		S$97.53M	6.83	6.96%	―	―	―
KUO		S$104.50M	17.00	0.82%	―	―	―
N02		S$263.36M	12.92	7.50%	57.14%	―	―
P52	75 Outperform	S$545.81M	13.16	16.44%	3.59%	4.93%	12.48%
S44		S$84.87M	77.72	0.42%	4.20%	―	―

Keppel Infrastructure Corporate Events

Keppel Infrastructure Trust Reviews FY2024 Performance at AGM

Keppel Infrastructure Trust held its Annual General Meeting at Suntec Singapore Convention and Exhibition Centre, where the CEO presented the portfolio performance for FY2024. The meeting confirmed the circulation of the annual report and financial statements to unitholders, and voting on resolutions was conducted electronically.

The most recent analyst rating on (SG:A7RU) stock is a Hold with a S$0.45 price target. To see the full list of analyst forecasts on Keppel Infrastructure stock, see the SG:A7RU Stock Forecast page.

Keppel Infrastructure Trust Streamlines Fundraising with New Mandate

Keppel Infrastructure Trust has announced a new KIHPL Placement Mandate, which allows the Trustee-Manager to issue placement units to Keppel Infrastructure Holdings without needing specific approval from Unitholders for each transaction. This mandate is expected to significantly reduce the time and costs associated with raising funds, enabling quicker market transactions. The company has historically raised equity for accretive acquisitions rather than balance sheet repairs, and the Singapore Exchange has stipulated conditions to ensure the mandate is used appropriately, primarily for funding potential acquisitions.

Keppel Infrastructure Trust to Release Q1 2025 Updates

Keppel Infrastructure Trust has announced that it will release its first quarter 2025 business and operational updates on April 22, 2025, before the market opens. This announcement is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting investor decisions and market perceptions.

Keppel Infrastructure Trust Reports Financial Statement Variances

Keppel Infrastructure Fund Management Pte. Ltd., as the trustee-manager of Keppel Infrastructure Trust, announced discrepancies between its audited and unaudited financial statements for the fiscal year ending December 31, 2024. The announcement highlights the variances and provides reasons for these differences, which are crucial for stakeholders to understand the financial adjustments and their implications on the trust’s financial reporting and compliance with the Singapore Exchange’s regulations.