Keppel has exposure to digital infrastructure such as data centres, power and subsea cables. “Keppel is on a positive trajectory, with lower gearing, improving ROE, return of capital via share buybacks and, rising dividends. This is underpinned by further simplification of its business to its core asset management/ infrastructure businesses, disposal of $14.4 billion of non-core assets and 8% p.a. Cagr in profit from continuing operations over the next three years on 7% growth in funds under management (FUM) and 50% uplift in power generation capacity,” Song and Khi write in their report.
In 2024, Keppel restructured itself as a global asset manager by dropping its conglomerate structure. On the way, in the 2010s, Keppel privatised its real estate (Keppel Land), its telecommunications and transportation (M1 and Keppel T&T) units, and divesting its logistics unit. Earlier this year, Keppel announced the sale of the mobile business of M1 to Simba.
On Oct 9, JP Morgan recognised the new Keppel by initiating coverage with a 2026 target of $12.50. The rationale of its analysts, Mervin Song and Terence Khi, is that new Keppel is a global asset manager which is valued differently from a conglomerate.
