Keppel Corporation - Strategy Gradually Bearing Fruits
- We see signs of Keppel Corporation (SGX:BN4)’s strategy bearing fruit with divestment of Keppel Logistics, Keppel Infra decarbonisation solutions and asset monetisation. Strong electricity and gas prices could be the key driver for Keppel Infra’s profit to improve strongly y-o-y.
- Keppel Corporation’s 1Q22 revenue of S$2.1bn (+9% y-o-y) was in line with our estimates at 24%/25% of our FY22F and consensus. 1Q22 profits were not disclosed but Keppel Corporation said it rose y-o-y. All segments grew y-o-y other than Urban Development.
- Revenue for O&M at S$503m (+22% y-o-y, -38% y-o-y) formed ~28% of our FY22F. The segment’s net loss reduced significantly y-o-y with positive EBITDA. It secured S$76m of new orders in 1Q22 with order book at S$4.8bn (37.5% renewable projects). All eyes are still on the definitive agreement with Sembcorp Marine (SGX:S51) on the merger of Keppel O&M by 30 Apr.
- Maintain ADD call on Keppel Corporation and SOP target price of S$7.20.
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 2022-04-21 2022-04-21
Previous report by CGS-CIMB:
2022-03-31 Keppel Corporation - Merger Postponed, Logistics Monetised
Target prices by 3 other brokers at Keppel Corp Target Prices.
Listing of broker reports at Keppel Corp Analyst Report.
Keppel Corp Share Price History,
Keppel Corp Announcements,
Keppel Corp Dividends & Corp Actions,
Keppel Corp News Articles