We came away from Keppel (SGX:BN4)’s briefing with increased confidence in its outlook and transformation journey. The outstanding infrastructure earnings seem sustainable, indicating a potential earnings upgrade for 2024.
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Key takeaway from Keppel's analyst briefing
Exciting year ahead.
Keppel reported historical high profit of S$4bn, driven by strong operating performance and sale of Kepel O&M (S$3.3bn gains). Management expressed optimism and confidence on another exciting year ahead with the improving operating environment especially fund management segment.
Transformation on the fast track.
The V2030 transformation plan is progressing very well. Keppel has grown its FUM by 44% from S$55bn as of end FY23 to S$79bn upon completion of the proposed Aermont acquisition in 1Q24, approaching its S$100bn target by 2026. Management is observing growing interest from investors as well.
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The effort to move away from lumpy earnings has also paid off, as recurring income made up ~78% of core profit in FY23, supporting stable returns to shareholders.
Steady infrastructure earnings.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
