Keppel Corporation 4Q21 Preview - Generous Dividend
- We expect Keppel Corp (SGX:BN4) to report ~53% h-o-h increase in net profit in 2H21F (on 27 Jan) to S$459m, boosted by divestment gains of ~S$396m.
- Keppel Corp clocked in S$1.6bn of proceeds in 2H21F from asset recycling efforts, paving way for stronger final dividend of S$0.16-0.18 (FY21F: S$0.28-S$0.30)
- Reiterate ADD call on Keppel Corp with higher SOP target price of S$7.20 as we roll over to FY23F.
- Keppel Corp's share price trades at 0.85x and 11x CY22F P/BV and P/E, -1 standard deviation below its historical average.
- Catalyst: aggressive asset recycling and earnings accretive M&As.
- The next major milestone for Keppel Corp is the finalisation of the proposed merger with Sembcorp Marine (SGX:S51) which we believe may be concluded by 1H22F.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2022-01-20 2022-01-20
Read also CGS-CIMB's most recent report:
2022-04-21 Keppel Corporation - Strategy Gradually Bearing Fruits
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