Broker Name: CGS International
Date of Report: February 6, 2026
Excerpt from CGS International report.
Report Summary
- Keppel Ltd’s long-term share price driver is its S\$13.5bn asset monetisation plan for 2025-2030, which could deliver special dividends of S\$0.74-1.11 per share, supporting a sustained dividend yield of 4-4.5% in FY26-27.
- The company’s FY25 core net profit was S\$411m, with reported profit boosted by mark-to-market gains and strong infrastructure earnings, especially from decarbonisation and capital recycling.
- Keppel plans to pay out 10-15% of monetisation proceeds as special dividends through 2030, with a S\$0.13 special DPS announced for FY25 and total forecasted DPS of S\$0.48-0.52/share for FY26-27.
- Infrastructure earnings are expected to rise with new projects like the Sakra cogen plant and a robust order backlog in Decarbonisation and Sustainability Solutions (DSS).
- The company’s SOP-based target price is raised to S\$13.52, reflecting higher earnings estimates, especially in the infrastructure segment.
- Keppel’s asset recycling strategy includes ongoing divestments and capital recycling gains, with upcoming sales focused on properties and data connectivity assets.
- The group has improved its ESG performance, exited its offshore & marine business, and targets significant renewable energy growth by 2030.
- Key risks include slower asset monetisation and unexpected operational challenges.
- Keppel remains supported by major shareholders like Temasek Holdings and boasts improving returns and resilient earnings growth in its transformation into an asset-light, sustainability-focused conglomerate.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
