Keppel Infrastructure (A7RU) AI Stock Analysis

• Market Cap: S$2.59B
• Dividend Yield: 5.88%
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.50
• Revenue Growth: 8.76%
• EPS Growth: -74.16%
• Country: SG
• Employees: 16
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): <0.01
• Shares Outstanding: 6,084,988,000
• 10 Day Avg. Volume: 6,747,910
• 30 Day Avg. Volume: 6,043,319
• PEG Ratio: -0.55
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.15
• 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: S$0.45
• Price Target Upside: 4.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ―

Keppel Infrastructure's overall stock score reflects its strong cash flow and revenue growth, but is offset by high leverage and declining profitability. The technical indicators show moderate strength but suggest limited upward momentum in the long term. The valuation presents mixed signals with a high P/E ratio tempered by a substantial dividend yield.

Positive Factors

Financial Stability

Distributions from KIT are largely unaffected by economic cycles, offering predictability and stability to investors.

Investment Opportunity

The trust's healthy forward yield of over 8.5% is higher than most comparable peers in the Singapore market, offering an attractive investment opportunity.

Sustainability Strategy

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

Negative Factors

Debt Refinancing Risks

Increasing debt refinancing risks as assets age pose a challenge.

Inflation Exposure

There is a risk due to exposure to increases in inflation.

Operational Risks

Key risks include plants not meeting availability thresholds due to operational issues.

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 multiple streams, primarily from its investments and operations in energy and environmental infrastructure. Revenue is derived from the sale of electricity and gas, operation of waste-to-energy plants, and provision of district cooling services. The company also forms strategic partnerships and joint ventures to expand its capabilities and access new markets. Significant factors contributing to its earnings include long-term contracts with customers, government projects, and its ability to innovate and offer integrated solutions in response to market demands.

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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.21B	2.04B	2.01B	1.58B	1.55B
Gross Profit	1.15B	787.05M	698.71M	587.30M	614.00M
EBITDA	477.01M	454.19M	355.58M	287.26M	313.10M
Net Income	59.59M	140.06M	-2.83M	23.80M	-52.16M
Balance Sheet
Total Assets	6.19B	5.62B	5.96B	4.50B	4.93B
Cash, Cash Equivalents and Short-Term Investments	457.32M	479.23M	526.89M	809.75M	555.94M
Total Debt	3.37B	3.63B	3.24B	2.07B	2.51B
Total Liabilities	4.21B	3.83B	4.06B	2.76B	3.44B
Stockholders Equity	1.68B	1.49B	1.56B	1.71B	1.44B
Cash Flow
Free Cash Flow	217.29M	238.17M	200.18M	210.67M	316.54M
Operating Cash Flow	306.23M	292.96M	244.60M	249.31M	345.53M
Investing Cash Flow	-543.38M	-45.31M	-1.58B	-276.01M	-36.12M
Financing Cash Flow	201.71M	-296.15M	1.06B	283.71M	-206.31M

Keppel Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A7RU, the sentiment is Positive. The current price of 0.43 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.40, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.05 is Negative, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	S$2.59B	40.57	3.22%	5.88%	8.76%	-74.16%
Sector *	62 Neutral	$10.14B	9.96	0.09%	2.90%	2.26%	-33.42%
BTG	―	S$111.27M	7.88	6.96%	―	―	―
KUO	―	S$110.31M	17.00	0.82%	―	―	―
N02	―	S$274.57M	12.83	7.50%	57.53%	―	―
P52	71 Outperform	S$696.26M	17.09	16.44%	2.81%	4.93%	12.48%
S44	―	S$99.12M	90.76	0.42%	3.59%	―	―

Keppel Infrastructure Corporate Events

Keppel Infrastructure Trust Secures S$25 Million Bank Facilities

Keppel Infrastructure Trust has secured bank facilities amounting to S$25 million under a new facility agreement. The agreement includes conditions that require immediate repayment if there is a change in the trustee-manager or its ability to fulfill obligations is hindered. If such a change leads to a cross default, it could impact facilities worth approximately S$1,248.5 million. As of now, no such change has occurred.

The most recent analyst rating on (SG:A7RU) stock is a Buy with a S$0.57 price target. To see the full list of analyst forecasts on Keppel Infrastructure stock, see the SG:A7RU Stock Forecast page.

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.