Date of Report

October 1, 2024

Broker Name

UOB Kay Hian

Company Overview

Keppel Corporation is a Singapore-based multinational company with diversified operations across various sectors, including offshore and marine, property, and infrastructure. The company plays a crucial role in shaping the urban landscape and advancing sustainable development.

Recent Developments

The report highlights that the Chinese government has launched a series of substantial stimulus measures aimed at rejuvenating its economy. These measures are expected to have a positive impact on sectors such as infrastructure and energy, areas in which Keppel has significant involvement.

Revenue Exposure to China

Keppel has meaningful revenue exposure to China, particularly in its infrastructure and property segments. The company is positioned to benefit from increased government spending on infrastructure projects, which could lead to new contracts and improved revenue streams.

Investment Recommendation

• Recommendation: BUY
• Current Price (S$): 6.63
• Target Price (S$): 8.86
• Potential Upside (%): 33.6%

Market Context

With the expected increase in infrastructure spending as part of the stimulus measures, Keppel is likely to see enhanced demand for its services and projects. The company’s diverse portfolio and strong track record in project execution make it well-equipped to capitalize on the opportunities arising from China’s economic recovery.

Conclusion

Keppel Corporation’s strategic positioning and significant exposure to the revitalizing Chinese economy present a strong investment opportunity. The anticipated growth in infrastructure development, fueled by government initiatives, places Keppel in a favorable position for substantial growth in the coming years.