Keppel - DBS Research 2025-08-01: New Keppel Resets For Growth With Asset-light Model

• To better reflect the recurring income-focused asset-light strategy under the “New Keppel” model, from 1H25, Keppel (SGX:BN4) has segregated its reporting to distinguish non-core assets under Non-Core Portfolio for Divestment.
• - Read this at SGinvestors.io -

1H25 core profit grew 25% y-o-y.

• Keppel’s 1H25 core profit, grew 25% y-o-y to S$431mil, driven by improved Real Estate business For comparison to the old reporting structure, 1H25 net profit (excludes only legacy O&M related business) would have been ~S$470mil, down 8% y-o-y due to lower valuation gains and higher operating & development losses, mainly from property related projects.
• - Read this at SGinvestors.io -
• Real Estate segment turned around with S$98mil profit (vs S$20mil losses in 1H24), contributing 20% to the group’s bottomline. Improvement was driven by higher fair value gains of investment properties and recognition of gains from partial disposal of Saigon Centre Phase 3.
• Connectivity saw a 19% dip in net profit to S$57mil, due to lower valuation gains and forfeiture fees paid by M1.
• Asset Management fees totaled S$195mil (-4% y-o-y) in 1H25.

New Keppel achieved an annualised ROE of 15.4% (vs 13.2% in 1H24). Including Non-Core Portfolio, ROE would be 7.2% (vs 6.5% in 1H24).

Steady outlook

• Read more at SGinvestors.io.

Pei Hwa HO DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-08-01

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