Keppel - Phillip Securities 2024-10-25: Surfing The Huge Data Centre Wave

• Limited financials provided except that Keppel's 9M24 net profit comparable y-o-y. We believe Keppel's 3Q24 net profit declined due to lower real estate earnings. Monetisation more than doubled by S$453mil to S$733mil.
• - Read this at SGinvestors.io -
• Prices for Bifrost transmission cable has more than doubled;
• Imported green power into Singapore will more than double;
• Huge demand with the commercialisation of two data centres in Genting Lane.
• There will be opportunities for both divestment gains and long-term recurrent asset management, operations, and maintenance fees.

The Positive

Multiple assets ready for divestments.

• - Read this at SGinvestors.io -
• Another asset primed for monetisation is two data centres in Genting Lane (Keppel DC Singapore 7 operational and 8 being completed). Both assets are booked at cost and market valued when closer to operating.
• Around S$453mil of properties in Saigon have been sold but are pending recognition and approval.
• BiFrost submarine cable is enjoying a significant uplift in pricing, and the focus is getting the system ready for service next year.

Power demand is healthy in Singapore, especially green.

• Read more at SGinvestors.io.

Paul Chew Phillip Securities Research | http://www.poems.com.sg/ 2024-10-25 SGinvestors.io

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