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Keppel Corporation Limited
(SGX:BN4)
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Rating:53Neutral
Price Target:
S$10.00
▼(-12.36% Downside)
Action:Reiterated
Date:10/31/26
The score is primarily constrained by weak and inconsistent cash-flow history and a bearish technical setup (price below key moving averages with negative MACD). The latest earnings call adds support via improving recurring income, exceeded FUM targets, and a sharp cash-flow turnaround, but this is tempered by substantial noncore losses, impairments, and elevated group leverage. Valuation is also a headwind due to a high P/E despite a moderate dividend yield.
Positive Factors
Recurring income and FUM growth
Rapidly expanding funds under management and recurring income strengthen Keppel’s shift toward asset management and operating platforms. This can improve earnings visibility, diversify revenue beyond projects, and support a more durable growth base as additional capital is deployed.
Negative Factors
Elevated group leverage
Higher group leverage reduces financial flexibility and leaves more earnings exposed to interest costs, particularly while legacy assets remain on the balance sheet. Deleveraging therefore depends on successful monetisation and disciplined capital allocation rather than operating improvement alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring income and FUM growth
Rapidly expanding funds under management and recurring income strengthen Keppel’s shift toward asset management and operating platforms. This can improve earnings visibility, diversify revenue beyond projects, and support a more durable growth base as additional capital is deployed.
Read all positive factors
Keppel Corporation Limited (BN4) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$17.68B
Dividend Yield3.57%
Average Volume (3M)3.91M
Price to Earnings (P/E)54.5
Beta (1Y)1.02
Revenue Growth10.65%
EPS Growth-44.54%
CountrySG
Employees4,964
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,820,557,700
10 Day Avg. Volume3,197,833
30 Day Avg. Volume3,909,913
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)1.79
Price to Sales (P/S)3.14
P/FCF Ratio32.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$13.10Price Target Upside14.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.48
Revenue Forecast (FY)S$7.22B
Keppel Corporation Limited Business Overview & Revenue Model
Company Description
Keppel Corporation Limited, a Singapore-based investment holding company established in 1968, maintains a global presence with significant operations in diverse sectors, including offshore and marine, real estate, infrastructure, and strategic inv...
How the Company Makes Money
Keppel generally earns income through a mix of recurring revenue from owning and operating infrastructure/real asset platforms and project-based or transaction-based income from developing and monetising assets. Key revenue sources typically inclu...
Keppel Corporation Limited Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive transformation narrative for 'new Keppel' with strong asset management momentum (FUM at SGD 106 billion), solid recurring income growth (+13% to SGD 467m), a marked rise in SSCI contributions (SGD 175m vs SGD 18m), healthy operating wins (Sakra Cogen commercialized, Bifrost fully commercialized) and a material free cash flow turnaround (SGD 570m inflow). These positives are tempered by significant legacy noncore headwinds—SGD 375m noncore loss, large rig impairments (SGD 165m), elevated group leverage (net debt/EBITDA 6.7x) and a 59% drop in group net profit to SGD 155m. Management articulated clear monetization plans (Apollo commitment, expected ~SGD 611m cash from first 6 rigs) that should mitigate legacy drag over time. Overall, operational and asset-management progress materially outweigh legacy portfolio challenges, though execution on monetization and rig-market recovery remains key.Positive Updates
New Keppel Net Profit Growth (Excluding Noncore)
New Keppel delivered net profit of SGD 530 million in H1 2026, up 25% year-on-year (from SGD 424 million in H1 2025) driven by stronger contributions from sponsor stakes/co-investments (SSCI), higher recurring income and asset management performance.
Negative Updates
Group Net Profit Decline (Including Noncore)
Reported group net profit for H1 2026 was SGD 155 million, down 59% versus SGD 378 million in H1 2025, due primarily to accounting losses from the noncore portfolio for divestment.
Read all updates
Q2-2026 Updates
Positive
Negative
New Keppel Net Profit Growth (Excluding Noncore)
New Keppel delivered net profit of SGD 530 million in H1 2026, up 25% year-on-year (from SGD 424 million in H1 2025) driven by stronger contributions from sponsor stakes/co-investments (SSCI), higher recurring income and asset management performance.
Read all positive updates
Company Guidance
The call reiterated clear near‑term guidance and targets backed by tangible metrics: Keppel has already surpassed its 2026 FUM target (SGD 100bn) with SGD 106bn as at end‑July and aims to grow FUM further, while targeting SGD 2–3bn of asset monetisation for the full year (SGD 1.7bn announced YTD, ~SGD 560m realised at end‑June and SGD 611m expected from the first six rigs this year, with ~SGD 1.3bn from the remaining four across 2027–28 and an Apollo USD 1.5bn commitment enabling up to ~SGD 3.7bn of rig monetisation); new Keppel delivered net profit of SGD 530m (overall group net profit SGD 155m), recurring income rose 13% to SGD 467m, SSCI profit jumped to ~SGD 175m (from SGD 18m), fund management fees were ~SGD 200m, H1 free cash inflow was SGD 570m (vs outflow SGD 48m a year ago), new Keppel annualised ROE ~15% (group ROE 3.6%), net debt/EBITDA for new Keppel ~1.4–1.5x (group c.6.7x), interim dividend SGD 0.15/share, cost savings exceed SGD 100m run‑rate (plus an M1 restructuring target of SGD 70m pa by 2028 with SGD 4m achieved YTD and SGD 10m targeted by end‑2026), Power additions include the 600MW Sakra Cogen (up 45% capacity, Power EBITDA +9% YoY), data‑infrastructure fundraising (e.g., DC Fund III ~USD 2bn) and expected further subsea cable decisions and Bifrost-related gains in H2 — all signalling a push to deleverage, crystallise non‑core value and scale the asset‑management earnings base.Keppel Corporation Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.81B | 5.98B | 6.60B | 6.97B | 6.62B | 6.61B |
| Gross Profit | 940.44M | 945.91M | 1.86B | 1.96B | 1.45B | 1.53B |
| EBITDA | 528.57M | 1.45B | 1.73B | 1.44B | 912.83M | 1.73B |
| Net Income | 161.04M | 788.51M | 951.72M | 4.08B | 938.22M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 26.52B | 27.09B | 27.66B | 26.84B | 31.06B | 32.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.24B | 2.42B | 2.45B | 1.50B | 1.08B | 3.35B |
| Total Debt | 11.52B | 11.95B | 12.07B | 11.14B | 10.38B | 12.16B |
| Total Liabilities | 15.41B | 16.30B | 16.23B | 15.82B | 19.15B | 19.88B |
| Stockholders Equity | 10.81B | 10.46B | 11.16B | 10.71B | 11.58B | 12.06B |
Cash Flow | ||||||
| Free Cash Flow | -68.00M | 585.69M | -411.07M | -862.66M | -436.62M | -813.92M |
| Operating Cash Flow | 96.80M | 1.10B | 200.34M | 58.43M | 259.59M | -275.56M |
| Investing Cash Flow | 473.29M | -511.16M | 700.93M | -942.71M | -667.28M | 2.03B |
| Financing Cash Flow | -673.24M | -539.35M | 136.60M | 722.94M | -1.52B | -668.13M |
Keppel Corporation Limited Technical Analysis
Negative
11.41
Price Trends
10.96
Negative
11.03
Negative
11.12
Negative
Market Momentum
-0.26
Negative
33.48
Neutral
58.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BN4, the sentiment is Negative. The current price of 11.41 is above the 20-day moving average (MA) of 10.33, above the 50-day MA of 10.96, and above the 200-day MA of 11.12, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 58.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BN4.
Keppel Corporation Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | S$17.98B | 9.67 | 29.45% | 4.40% | 25.85% | 27.26% | |
71 Outperform | S$426.18M | 6.75 | 23.60% | 1.38% | 25.71% | 175.44% | |
69 Neutral | S$318.49M | 2.90 | 41.27% | ― | 10.82% | 60.12% | |
66 Neutral | S$252.11M | 7.57 | 23.66% | 0.53% | 3.03% | 118.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | S$10.40B | 17.50 | 10.86% | 4.62% | 7.75% | -41.04% | |
53 Neutral | S$17.68B | 54.54 | 3.29% | 3.57% | 10.65% | -44.54% |
* Industrials Sector Average
SG:BN4
Keppel Corporation Limited
10.09
0.31
3.13%
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<0.01
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Keppel Corporation Limited Corporate Events
Keppel lifts profits, scales asset management and accelerates non-core divestments
Oct 29, 2026
Keppel reported robust results for the third quarter and first nine months of 2026, with 3Q net profit up about 15% year-on-year and recurring income for the period rising more than 10%, driven mainly by stronger performance in its Connectivity an...
Keppel’s New Keppel Platform Delivers Strong 2026 Earnings as Asset Management and Infrastructure Drive Growth
Oct 29, 2026
Keppel’s “New Keppel” platform delivered robust earnings in 3Q and the first nine months of 2026, with net profit up close to 15% and over 20% year on year respectively, driven by stronger performance in Infrastructure and Connec...
Keppel Joins Vietnam International Financial Centre, Eyes US$1 Billion in Real Estate Investments
Oct 28, 2026
Keppel Ltd., through its Real Estate Division, has built a four-decade presence in Vietnam, becoming one of the country’s largest foreign real estate investors with 30 projects and over S$5 billion in registered capital. The company has focu...
Keppel and Apollo team up to pursue large-scale private capital deals in Asia-Pacific
Oct 27, 2026
Keppel Ltd. has entered into a framework agreement with Apollo Management Singapore to jointly explore large-scale private capital solutions for corporates and asset owners in the Asia-Pacific region. The collaboration seeks to harness both firms&...
Keppel’s RigCo taps Seatrium to complete S$500 million offshore rig portfolio
Oct 26, 2026
Keppel’s RigCo subsidiary has engaged Seatrium to complete construction of four offshore drilling rigs—a premium seventh-generation drillship, a harsh environment jackup and two mid-water semisubmersibles—for an estimated value o...
Keppel Named Biomethane Aggregator in Singapore’s 300 MW Sandbox
Oct 23, 2026
Keppel has been appointed by Singapore’s Economic Development Board as one of three biomethane aggregators, authorised to import and sell up to 120 MW of biomethane for 15 years under the nation’s 300 MW Biomethane Sandbox initiative. ...
Keppel Suspends Vietnam JV Arbitration Amid 40% Stake Divestment
Oct 16, 2026
Keppel Ltd. has updated the market on arbitration involving its wholly owned subsidiary Corredance Pte. Ltd. and counterparties in a joint venture for the Empire City project in Ho Chi Minh City, Vietnam. The dispute arose from an investment agree...
Keppel Winds Up Dormant Subsidiary With No Expected Earnings Impact
Oct 14, 2026
Keppel Ltd. has initiated a member’s voluntary liquidation of its wholly owned dormant subsidiary, Array Realty Pte. Ltd., as part of its ongoing rationalisation of non-core entities. The company stated that the wind-up of this inactive unit...
Keppel Sets Late-October Dates for Q3 2026 Business Updates Across Group and REITs
Oct 2, 2026
Keppel Ltd. has announced the schedule for releasing its third-quarter and nine-month 2026 business updates, covering both the parent company and its listed real estate investment trusts. The updates will be published before market open on 23, 27,...
Keppel Prices CNH1 Billion 1.95% Notes Under Multi-Currency Debt Programme
Sep 28, 2026
Keppel Ltd. has priced CNH1 billion of 1.95 per cent. notes due 2031 under its US$5 billion multi-currency debt issuance programme, appointing DBS Bank, ICBC Singapore, Shanghai Pudong Development Bank Singapore and United Overseas Bank as joint b...
Keppel Winds Down Dormant Shanghai Subsidiary in Voluntary Liquidation
Sep 24, 2026
Keppel Ltd. has placed its wholly owned subsidiary, Shuju Info Tech (Shanghai) Co. Ltd., into members’ voluntary liquidation, reflecting the company’s move to wind down a dormant entity within its corporate structure. The decision unde...
Keppel Confirms Talks With StarHub on Potential M1 Deal
Sep 23, 2026
Keppel Ltd. has confirmed that it remains in ongoing discussions with StarHub Ltd. over a potential transaction involving M1 Limited as part of broader consolidation efforts in Singapore’s telecommunications sector. The company reiterated th...
Keppel Redeems and Cancels S$400 Million Perpetual Securities
Sep 16, 2026
Keppel Ltd., formerly Keppel Corporation Limited, is a Singapore-headquartered conglomerate active in infrastructure, real estate, and asset management, delivering sustainable urbanisation and investment solutions across Asian and global markets t...
Keppel Moves to Wind Up Dormant Subsidiary With No Material Earnings Impact
Sep 4, 2026
Keppel Ltd. has initiated a member’s voluntary liquidation of Celestite Pte. Ltd., a wholly-owned subsidiary that has been classified as dormant. The move reflects ongoing efforts to streamline the group’s legal entity structure by win...
Keppel Places Two Wholly-Owned Units in Voluntary Liquidation
Sep 1, 2026
Keppel Ltd. has placed its wholly-owned subsidiaries Bogor DC Investment Pte. Ltd. and Dubnium DC Pte. Ltd. into members’ voluntary liquidation, as part of an internal restructuring of its corporate holdings. The move is not expected to mate...
Keppel wins 50 MW data centre award for AI-ready Jurong Island hub
Aug 21, 2026
Keppel’s Connectivity Division has been provisionally awarded 50 MW of new data centre capacity under Singapore’s second Data Centre Call for Application, following a competitive process that drew more than 20 proposals. The award will...
Keppel Targets AI-Driven Infrastructure Growth as Funds Under Management Set to Double
Aug 12, 2026
Keppel plans to scale its asset management franchise around AI-driven energy and digital infrastructure, aiming to double funds under management to $200 billion by 2030. The group is building multiple income streams as sponsor, co-investor and ope...
Keppel Wins FBO Licence for Kruger Subsea Cable Linking Singapore to Middle East
Aug 11, 2026
Keppel Ltd.’s Connectivity Division has secured a Facilities-Based Operator licence from Singapore’s Infocomm Media Development Authority for its Kruger Cable System, enabling the group to own and operate the subsea telecommunications ...
Keppel Places Dormant Subsidiary in Voluntary Liquidation
Aug 6, 2026
Keppel Ltd. has placed its dormant, wholly owned subsidiary Ocean Capital Properties Pte Ltd under members’ voluntary liquidation, streamlining its corporate structure by winding down a non-operational entity. The company said the move will...
Keppel Ltd. Winds Up Indonesian Property Subsidiary With No Material Earnings Impact
Jul 31, 2026
Keppel Ltd. has placed its wholly owned Indonesian subsidiary, PT Keppel Land, under members’ voluntary liquidation, marking an organisational streamlining within its regional property portfolio. The company stated that the winding-up will n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.