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Keppel Corporation Limited
(SGX:BN4)
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Rating:61Neutral
Price Target:
S$12.50
▲(9.17% Upside)
Action:Reiterated
Date:07/30/26
The score reflects a mixed fundamental picture: acceptable profitability but meaningfully constrained by inconsistent free cash flow and moderate leverage. Technicals are supportive with price above major moving averages, while valuation is a notable headwind due to a high P/E. The earnings call adds moderate support on improving recurring income and cash flow turnaround, but legacy noncore losses and high group leverage keep risk elevated.
Positive Factors
Asset management scale (FUM milestone)
Hitting SGD 106bn FUM ahead of target validates Keppel's shift to asset-management scale. A larger FUM base drives recurring fee income, improves fundraising access and deal flow, and creates a capital-light, higher-margin growth engine that supports sustained recurring revenues.
Negative Factors
Elevated group leverage
A group net debt/EBITDA ~6.7x indicates meaningful leverage that limits strategic flexibility, raises interest expense sensitivity, and increases refinancing and covenant risk. High leverage magnifies downside if monetisation or cash flow plans slip, making execution critical for balance sheet repair.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset management scale (FUM milestone)
Hitting SGD 106bn FUM ahead of target validates Keppel's shift to asset-management scale. A larger FUM base drives recurring fee income, improves fundraising access and deal flow, and creates a capital-light, higher-margin growth engine that supports sustained recurring revenues.
Read all positive factors
Keppel Corporation Limited (BN4) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$19.57B
Dividend Yield3.13%
Average Volume (3M)3.51M
Price to Earnings (P/E)40.4
Beta (1Y)0.98
Revenue Growth10.65%
EPS Growth-44.54%
CountrySG
Employees4,964
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,820,557,700
10 Day Avg. Volume3,765,590
30 Day Avg. Volume3,505,210
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)1.79
Price to Sales (P/S)3.14
P/FCF Ratio32.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$13.09Price Target Upside14.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.5
Revenue Forecast (FY)S$7.20B
Keppel Corporation Limited Business Overview & Revenue Model
Company Description
Keppel Corporation Limited, a Singapore-based investment holding company established in 1968, maintains a global presence with significant operations in diverse sectors, including offshore and marine, real estate, infrastructure, and strategic inv...
How the Company Makes Money
Keppel makes money through a mix of recurring income from operating assets and fee-based earnings from asset management, alongside development and project-related income. Key revenue streams include: (1) Infrastructure operations: revenue generate...
Keppel Corporation Limited Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive transformation narrative for 'new Keppel' with strong asset management momentum (FUM at SGD 106 billion), solid recurring income growth (+13% to SGD 467m), a marked rise in SSCI contributions (SGD 175m vs SGD 18m), healthy operating wins (Sakra Cogen commercialized, Bifrost fully commercialized) and a material free cash flow turnaround (SGD 570m inflow). These positives are tempered by significant legacy noncore headwinds—SGD 375m noncore loss, large rig impairments (SGD 165m), elevated group leverage (net debt/EBITDA 6.7x) and a 59% drop in group net profit to SGD 155m. Management articulated clear monetization plans (Apollo commitment, expected ~SGD 611m cash from first 6 rigs) that should mitigate legacy drag over time. Overall, operational and asset-management progress materially outweigh legacy portfolio challenges, though execution on monetization and rig-market recovery remains key.Positive Updates
New Keppel Net Profit Growth (Excluding Noncore)
New Keppel delivered net profit of SGD 530 million in H1 2026, up 25% year-on-year (from SGD 424 million in H1 2025) driven by stronger contributions from sponsor stakes/co-investments (SSCI), higher recurring income and asset management performance.
Negative Updates
Group Net Profit Decline (Including Noncore)
Reported group net profit for H1 2026 was SGD 155 million, down 59% versus SGD 378 million in H1 2025, due primarily to accounting losses from the noncore portfolio for divestment.
Read all updates
Q2-2026 Updates
Positive
Negative
New Keppel Net Profit Growth (Excluding Noncore)
New Keppel delivered net profit of SGD 530 million in H1 2026, up 25% year-on-year (from SGD 424 million in H1 2025) driven by stronger contributions from sponsor stakes/co-investments (SSCI), higher recurring income and asset management performance.
Read all positive updates
Company Guidance
The call reiterated clear near‑term guidance and targets backed by tangible metrics: Keppel has already surpassed its 2026 FUM target (SGD 100bn) with SGD 106bn as at end‑July and aims to grow FUM further, while targeting SGD 2–3bn of asset monetisation for the full year (SGD 1.7bn announced YTD, ~SGD 560m realised at end‑June and SGD 611m expected from the first six rigs this year, with ~SGD 1.3bn from the remaining four across 2027–28 and an Apollo USD 1.5bn commitment enabling up to ~SGD 3.7bn of rig monetisation); new Keppel delivered net profit of SGD 530m (overall group net profit SGD 155m), recurring income rose 13% to SGD 467m, SSCI profit jumped to ~SGD 175m (from SGD 18m), fund management fees were ~SGD 200m, H1 free cash inflow was SGD 570m (vs outflow SGD 48m a year ago), new Keppel annualised ROE ~15% (group ROE 3.6%), net debt/EBITDA for new Keppel ~1.4–1.5x (group c.6.7x), interim dividend SGD 0.15/share, cost savings exceed SGD 100m run‑rate (plus an M1 restructuring target of SGD 70m pa by 2028 with SGD 4m achieved YTD and SGD 10m targeted by end‑2026), Power additions include the 600MW Sakra Cogen (up 45% capacity, Power EBITDA +9% YoY), data‑infrastructure fundraising (e.g., DC Fund III ~USD 2bn) and expected further subsea cable decisions and Bifrost-related gains in H2 — all signalling a push to deleverage, crystallise non‑core value and scale the asset‑management earnings base.Keppel Corporation Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.81B | 5.98B | 6.60B | 6.97B | 6.62B | 6.61B |
| Gross Profit | 940.44M | 945.91M | 1.86B | 1.96B | 1.45B | 1.53B |
| EBITDA | 528.57M | 1.45B | 1.73B | 1.44B | 912.83M | 1.61B |
| Net Income | 161.04M | 788.51M | 951.72M | 4.08B | 938.22M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 26.52B | 27.09B | 27.66B | 26.84B | 31.06B | 32.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.24B | 2.42B | 2.45B | 1.50B | 1.08B | 3.35B |
| Total Debt | 11.52B | 11.95B | 12.07B | 11.14B | 10.38B | 12.16B |
| Total Liabilities | 15.41B | 16.30B | 16.23B | 15.82B | 19.15B | 19.88B |
| Stockholders Equity | 10.81B | 10.46B | 11.16B | 10.71B | 11.58B | 12.06B |
Cash Flow | ||||||
| Free Cash Flow | -68.00M | 585.69M | -411.07M | -862.66M | -436.62M | -813.92M |
| Operating Cash Flow | 96.80M | 1.10B | 200.34M | 58.43M | 259.59M | -275.56M |
| Investing Cash Flow | 473.29M | -511.16M | 700.93M | -942.71M | -667.28M | 2.03B |
| Financing Cash Flow | -673.24M | -539.35M | 136.60M | 722.94M | -1.52B | -668.13M |
Keppel Corporation Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | S$18.25B | 10.14 | 29.45% | 5.00% | 25.85% | 27.26% | |
71 Outperform | S$520.02M | 11.98 | 16.98% | 1.10% | 25.71% | 175.44% | |
69 Neutral | S$443.12M | 3.97 | 41.48% | ― | 10.82% | 60.12% | |
65 Neutral | S$319.00M | 10.40 | 24.71% | 0.39% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | S$19.57B | 40.39 | 5.07% | 2.89% | 10.65% | -44.54% | |
60 Neutral | S$10.37B | 17.86 | 18.30% | 4.74% | 7.75% | -41.04% |
* Industrials Sector Average
SG:BN4
Keppel Corporation Limited
11.51
3.57
44.96%
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107.81%
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Keppel Corporation Limited Corporate Events
Keppel sharpens asset-management pivot as infrastructure contracts and fundraising swell
Jul 30, 2026
Keppel Ltd., headquartered in Singapore, is evolving from a diversified conglomerate into a global asset manager and operator. The group’s core businesses span infrastructure, real estate and connectivity, including power generation, decarbo...
Keppel beats S$100 billion FUM goal early as investors back digital and infrastructure push
Jul 28, 2026
Keppel Ltd., the Singapore-based global asset manager and operator, has surpassed its interim end-2026 funds under management target of S$100 billion ahead of schedule, after adding about S$13.5 billion in new FUM across its infrastructure, real e...
Keppel Fully Sells Bifrost Fibre Pairs in US$1.3 Billion Subsea Cable Push
Jul 13, 2026
Keppel’s Connectivity Division has fully commercialised all five of its Bifrost subsea cable fibre pairs, securing Indefeasible Rights of Use with a mix of global hyperscalers, major telecom operators and technology companies. The portfolio,...
Keppel Faces Supreme Court Appeal in Jakarta Land Dispute, Sees No Material Impact
Jun 27, 2026
Keppel Ltd. has provided an update on an ongoing civil action in Indonesia involving land plots in Jakarta, where an individual claimant is challenging the ownership held by its wholly owned subsidiary PT. Kepland Investama. After Jakarta’s ...
Keppel Secures Fourth Fibre Pair on Bifrost Cable in High-Demand Connectivity Push
Jun 17, 2026
Keppel’s Connectivity Division has signed an Indefeasible Right of Use agreement with a global technology company for the fourth of its five fibre pairs on the Bifrost subsea cable system, highlighting strong demand for high-capacity, low-la...
Keppel Prices S$325 Million Subordinated Perpetual Securities to Refinance Debt
Jun 4, 2026
Keppel Ltd. has priced S$325 million of fixed-rate subordinated perpetual securities at 3.30% under its US$5 billion multi-currency debt issuance programme, appointing DBS Bank, OCBC and UOB as joint bookrunners and lead managers. The perpetuals, ...
Keppel Completes Voluntary Liquidation of Wholly Owned Subsidiary
Jun 2, 2026
Keppel Ltd. has completed the member’s voluntary liquidation of its wholly owned subsidiary, Double Peak Holdings Limited, following an earlier announcement of the planned winding-up. The move reflects Keppel’s ongoing efforts to ratio...
Keppel Starts Singapore’s First Hydrogen-Compatible Power Plant, Lifting Capacity by 45%
May 29, 2026
Keppel Ltd., a global asset manager and operator focused on sustainability-related infrastructure, has significantly expanded its power generation footprint in Singapore with the launch of the Keppel Sakra Cogen Plant. The company now oversees a d...
Keppel Wins Appeal in Jakarta Land Ownership Dispute
May 26, 2026
Keppel Ltd. has reported a favorable outcome in an Indonesian legal dispute involving its wholly owned subsidiary, PT Kepland Investama, over the ownership of land plots in Jakarta. The High Court of DKI Jakarta on 13 May 2026 upheld an earlier So...
Keppel Drops Planned Divestment of M1 After Regulatory Setback
May 22, 2026
Keppel Ltd. has terminated its proposed divestment of Singapore mobile operator M1 Limited after a key regulatory condition, securing approval from the Infocomm Media Development Authority, was not met by the extended long-stop date. The share pur...
Keppel highlights strong core earnings, infrastructure momentum at 58th AGM
May 4, 2026
Keppel Ltd.’s 58th annual general meeting highlighted a year of strong progress in 2025 as the “New Keppel” sharpened its positioning as a global asset manager and operator. The company reported a 39% year-on-year rise in net pro...
Keppel refreshes board and committees with new independent director and chair roles
May 4, 2026
Keppel Ltd. has announced changes to its board composition, appointing Dame Anne Helen Richards as an independent director effective 1 July 2026, when she will also join the Board Risk Committee. The move adds international asset management and go...
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.