Keppel & Sembcorp Marine's Valuations Ex-Distribution - UOB Kay Hian 2023-02-21: Dawn Of A New Age

• We believe that the volatility in Keppel Corp's share price and Sembcorp Marine's share price this week could present major opportunities for investors. We remain bullish on both companies’ prospects after the merger of Keppel Offshore & Marine (KOM) with Sembcorp Marine.
• Read this at SGinvestors.io -
• Read this at SGinvestors.io -

Whipsawing share prices present opportunities.

• We expect Keppel Corp's share price and Sembcorp Marine's share price to be volatile heading towards 23 February, ex-distribution of Keppel Corp shares. See Keppel Corp's dividend dates.
• We calculate that the theoretical ex-rights price for Keppel Corp to be S$6.98 based on Sembcorp Marine's share price of S$0.122; however this ignores potential valuation upside from the drilling assets within AssetCo which we have conservatively valued at S$2.46. This backs up our AssetCo valuation of S$2.84 within our pro forma SOTP-based for Keppel Corp of S$9.09.

We maintain our BUY rating on Keppel Corp with a target price of S$9.68.

• Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
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