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Keppel Infrastructure
(SGX:A7RU)
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Rating:60Neutral
Price Target:
S$0.57
â–²(7.92% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily constrained by balance-sheet leverage and thin/less consistent net profitability despite steady operations and positive free cash flow. Technicals are a meaningful positive (price above major moving averages with supportive momentum). Valuation is mixed, with an attractive dividend yield but a high P/E, while the latest earnings call was net positive due to FFO growth and refinancing progress, tempered by higher gearing and identified near-term headwinds.
Positive Factors
Diversified contracted infrastructure portfolio
A broad portfolio across district cooling, waste‑to‑energy, water and industrial utilities provides scale and mixed revenue drivers under long‑term contracts or tariffs. This diversification supports persistent, contractually backed cash flows and reduces single‑asset dependence over the medium term.
Negative Factors
Elevated leverage
High leverage and a ~2.3x debt‑to‑equity profile constrain financial flexibility and raise refinancing and interest‑service risk. With gearing at ~44% after recent deployments, balance‑sheet strain could limit future acquisitions or distributions if cash flow softens or rates rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified contracted infrastructure portfolio
A broad portfolio across district cooling, waste‑to‑energy, water and industrial utilities provides scale and mixed revenue drivers under long‑term contracts or tariffs. This diversification supports persistent, contractually backed cash flows and reduces single‑asset dependence over the medium term.
Read all positive factors
Keppel Infrastructure (A7RU) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$3.20B
Dividend Yield3.83%
Average Volume (3M)6.70M
Price to Earnings (P/E)57.8
Beta (1Y)0.44
Revenue Growth4.37%
EPS Growth-51.87%
CountrySG
Employees16
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)<0.01
Shares Outstanding6,086,347,000
10 Day Avg. Volume6,255,541
30 Day Avg. Volume6,701,723
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)3.72
Price to Sales (P/S)1.31
P/FCF Ratio17.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$0.58Price Target Upside8.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.02
Revenue Forecast (FY)S$2.47B
Keppel Infrastructure Business Overview & Revenue Model
Company Description
Keppel Infrastructure Trust operates as a publicly traded business trust. It offers investors access to an extensive and varied portfolio of essential infrastructure assets, strategically located in jurisdictions with robust legal frameworks condu...
How the Company Makes Money
Keppel Infrastructure Trust generally makes money by owning infrastructure assets that generate recurring cash flows from the provision of essential services. Key revenue streams typically include: (1) service/utility charges from customers under ...
Keppel Infrastructure Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2027
Earnings Call Sentiment Positive
The call presented a generally positive outlook: KIT reported FFO growth (+14% YoY), modest DI improvement excluding divestment gains (+1.2% YoY), secured refinancing and liquidity, executed capital recycling into accretive assets, and demonstrated operational resilience across the portfolio. Near-term headwinds include fuel cost under-recovery at City Energy, sector-specific tariff step-downs (BKR2 ~EUR 35 reduction) with an estimated ~SGD 4 million full‑year DI impact, a decline in environmental services revenue linked to concession timing, and higher net gearing (44.2%) after acquisitions. Management emphasized active capital management, hedging, and growth investments that support sustainable distributions over the medium term. Overall, the positives — credible FFO/DI growth, secured funding, accretive deployments and operational stability — outweigh the near-term challenges and timing-related headwinds.Positive Updates
Portfolio Size and Long-Term Returns
Portfolio valued at ~SGD 9.4 billion as at 30 June 2026; KIT delivered total returns of ~13% in 1H 2026 and approximately 136% over the past decade, demonstrating long-term value creation.
Negative Updates
Fuel Cost Under-Recovery at City Energy
City Energy experienced a fuel cost under-recovery in Q2 2026 due to higher commodity prices tied to geopolitical tensions; recovery timing depends on commodity price movements and may take several quarters. Management offset part of the impact with cost optimization and a one‑off SGD 4.5 million property tax refund (non-recurring).
Read all updates
Q2-2026 Updates
Positive
Negative
Portfolio Size and Long-Term Returns
Portfolio valued at ~SGD 9.4 billion as at 30 June 2026; KIT delivered total returns of ~13% in 1H 2026 and approximately 136% over the past decade, demonstrating long-term value creation.
Read all positive updates
Company Guidance
Management reiterated disciplined guidance focused on sustainable DPU growth and capital recycling, noting a SGD 9.4bn portfolio, total returns of ~13% in 1H26 (136% over the past decade) and portfolio DI growth of 8.5% since 2018; 1H26 distributable income rose 1.2% y/y to SGD 101.1m with a declared DPU of SGD 1.99 cents/unit, total asset FFO up 14% y/y to SGD 200.5m and total-asset DI after maintenance capex and debt repayments at SGD 147.5m. They’ve redeployed ~80% of divestment proceeds into two accretive deals (46.7% in GMG and lifting KMC to 90%), secured 100% of FY2026 refinancing (including a SGD 200m 7‑year MTN and ~SGD 300m committed facilities), and maintain balance‑sheet strength with consolidated debt of ~USD/SGD 3.28bn, net gearing at 44.2%, interest coverage improved to 8.3x, WACD ~4.4–4.5%, ~77% of debt hedged and ~79% of cash‑flow distributions hedged. Management flagged operational details and one‑offs: City Energy’s temporary fuel under‑recovery (partly offset by a one‑off ~SGD 4.5m property‑tax refund), BKR2’s October 2026 feed‑in tariff step‑down (c. SGD 4m full‑year DI impact), Ventura’s July acquisition of ~150 buses (~6x EBITDA, sub‑SGD book, ~SGD 1–5m annualised DI), and EMK/incineration expansion due end‑2026 that should drive future upside.Keppel Infrastructure Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.51B | 2.28B | 2.21B | 2.04B | 2.01B | 1.58B |
| Gross Profit | 1.29B | 386.85M | 1.15B | 787.05M | 698.71M | 587.30M |
| EBITDA | 524.73M | 511.91M | 503.71M | 454.19M | 355.58M | 287.26M |
| Net Income | 91.43M | 129.91M | 59.59M | 140.06M | 28.02M | -170.15M |
Balance Sheet | ||||||
| Total Assets | 6.25B | 6.40B | 6.19B | 5.62B | 5.96B | 4.50B |
| Cash, Cash Equivalents and Short-Term Investments | 498.55M | 718.60M | 457.32M | 479.23M | 526.89M | 809.75M |
| Total Debt | 3.46B | 4.44B | 3.37B | 3.63B | 3.24B | 2.07B |
| Total Liabilities | 4.39B | 5.30B | 4.21B | 3.83B | 4.06B | 2.76B |
| Stockholders Equity | 1.51B | 801.57M | 1.68B | 1.49B | 1.56B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 172.47M | 170.14M | 217.29M | 238.17M | 200.18M | 210.67M |
| Operating Cash Flow | 295.74M | 306.34M | 306.23M | 292.96M | 244.60M | 249.31M |
| Investing Cash Flow | -295.03M | -40.96M | -543.38M | -45.31M | -1.58B | -276.01M |
| Financing Cash Flow | 12.88M | 227.00K | 201.71M | -296.15M | 1.06B | 283.71M |
Keppel Infrastructure Technical Analysis
Positive
0.53
Price Trends
0.51
Positive
0.51
Positive
0.49
Positive
Market Momentum
<0.01
Positive
52.40
Neutral
20.83
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 0.53 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | S$1.11B | 22.04 | 18.34% | 2.87% | 26.32% | 41.37% | |
70 Outperform | S$1.18B | 11.81 | 19.31% | 4.50% | 22.92% | 7.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | S$3.20B | 57.78 | 5.87% | 7.43% | 4.37% | -51.87% |
* Basic Materials Sector Average
SG:A7RU
Keppel Infrastructure
0.52
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30.33%
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Keppel Infrastructure Corporate Events
Keppel Infrastructure Trust Secures S$125m Loan with Change-of-Control Triggers
Jul 6, 2026
Keppel Infrastructure Trust’s trustee-manager has secured new term loan and revolving credit facilities totaling S$125 million under a facility agreement dated 6 July 2026. The facilities contain conditions that require immediate repayment i...
KIT to Lift Keppel Merlimau Cogen Stake to 90% in S$128 Million Deal
Jun 9, 2026
Keppel Infrastructure Trust plans to acquire an additional 39% stake in Keppel Merlimau Cogen (KMC), a combined cycle gas turbine power plant on Jurong Island, from KCIF Investments via the purchase of Kindle Energy for up to S$128.1 million funde...
Keppel Infrastructure Trust defends KMC deal valuation as it leans on resilient cash flows
Jun 9, 2026
Keppel Infrastructure Trust’s management and largely independent board defended the governance and valuation process behind a proposed acquisition of an additional 39% interest in Keppel Merlimau Cogen, stressing that five of six directors a...
Keppel Infrastructure Trust Leans on Essential Assets and Energy Transition for Growth
Jun 9, 2026
Keppel Infrastructure Trust, managed by Keppel Infrastructure Fund Management, positions itself as the largest SGX-listed infrastructure business trust with a S$9.1 billion portfolio of 15 essential businesses and assets across developed markets i...
Keppel Infrastructure Trust Defends Portfolio Strategy as Distributable Income Climbs
May 29, 2026
At its 2026 annual general meeting in Singapore, Keppel Infrastructure Trust’s management addressed unitholders’ questions on FY2025 performance, portfolio impairments and capital allocation, while underscoring that cash flow metrics, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.