Keppel Corp (SGX:BN4)'s FY22 net profit was below expectations, at 92% of our estimated profit. Net profit of $927mil (-9% y-o-y) was under our expectations as Urban Development continued to underperform due to headwinds from China’s property market.
- Read this at SGinvestors.io -
Asset management target raised to $200bn from $100bn previously. This segment is the fastest-growing segment of the Group and the largest contributor to its earnings in FY22.
Maintain BUY on Keppel Corp with higher SOTP-based target price of $9.54. We adjusted our estimates for Keppel O&M and Asset Co higher, following the partial reversal of impairments made and the clearer path to divestment.
Keppel Corp's FY22 – The Positives
$4.6bn in asset monetisation, on track to exceed $5bn by this year. Another ~$10bn in assets to be monetised.
- Read this at SGinvestors.io -
Moving ahead, we believe Keppel Corp will move to monetise another ~$10bn of assets it previously identified for monetisation. It had previously listed $17.5bn of assets it is seeking to monetise as part of its strategy to transform its Group to be more asset-light.
Write-back of $293mil of impairments for certain legacy rig assets.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback reward 🎟 !
