Keppel Corporation - UOB Kay Hian 2023-04-21: Starting A New Chapter With A Solid Quarterly Performance

• Keppel Corporation gave a solid 1Q23 business update with a 9% y-o-y growth in revenue generated across its energy & environment, urban development and connectivity segments.
• We expect its share price to continue performing well, underpinned by a robust recovery in Keppel Land as well as a potential catalyst to Keppel Corp's share price from the announcement of a new interim asset monetisation target.
• - Read this at SGinvestors.io -

Starting off strong in 1Q23

• Keppel Corporation (SGX:BN4) – in its new iteration as a company without an offshore marine business – gave a solid 1Q23 business update with revenue up 9% y-o-y to S$2.3b due to good performances across its energy & environment, urban development and connectivity segments.
• - Read this at SGinvestors.io -
• The update appears to justify the strong performance of Keppel Corp's share price year-to-date, rising 30.9% and outperforming the STI’s 3.1% and MSCI Singapore’s 7.5%.
• Balance sheet still healthy. Keppel Corp’s net gearing increased to 0.83 as at end-1Q23 vs 0.78x as at end-22 due to the significant distribution in specie of Sembcorp Marine shares, offset by the substantial disposal gain. As at end-1Q23, 69% of Keppel Corp’s borrowings were on fixed rates with an average interest cost of 3.4%.

Keppel will soon announce new interim asset monetisation targets.

• Read more at SGinvestors.io.

Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-04-21 SGinvestors.io

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