UOB Kay Hian Report – October 30, 2024

Keppel Corporation: Tapping into Data Center Growth and Connectivity

Keppel Corporation (KEP SP), a diversified conglomerate based in Singapore, is strategically positioning itself as a key player in the digital infrastructure space, focusing on data centers and connectivity solutions. Recognized for its commitment to innovation and value creation, Keppel is capitalizing on the increasing demand for data infrastructure, driven by global digitalization trends and rising data consumption in Asia.

Keppel’s expansion in the data center sector aligns with long-term growth opportunities as companies increasingly require robust digital infrastructure to support data-heavy applications. Keppel’s integrated approach leverages its experience across real estate, engineering, and technology, positioning the company as an alternative, undervalued player within this high-growth sector. The company’s connectivity solutions further bolster its digital offerings, making it well-equipped to capture a significant market share within the digital economy.

With a “BUY” recommendation and a target price set at S$9.25, Keppel is viewed as an attractive investment due to its diversified portfolio and potential for high returns through its digital infrastructure focus. The company’s stable cash flow, combined with its expanding data center assets, enhances its competitive advantage, making Keppel a compelling option for investors looking to gain exposure to the digital transformation wave in Singapore and beyond.

End of Report