- Keppel (SGX:BN4)'s 1H24 revenue and adjusted PATMI was below expectations at 42%/37% of our FY24e forecast. Adjusted PATMI declined 25% y-o-y to S$346mil due to losses in the real estate division. Headline earnings was dragged down by legacy assets including fair value losses at Seatrium, Rigco notes receivables and Floatel associate losses.
- - Read this at SGinvestors.io -
- We raised our RNAV discount on the property division. The key catalyst for Keppel's share price is the further monetisation of legacy assets Rigco (S$4.2bn vendor notes) and Flotel as part of the additional S$5 to 7bn asset monetisation target by end 2026.
The Positive
Building up the asset management franchise.
- - Read this at SGinvestors.io -
- Management said that acquisition and performance fees are around 10% and 12% respectively of management fees.
The Negative
Real estate earnings collapse.
- Read more at SGinvestors.io.
