Broker Name: Lim & Tan Securities
Date of Report: 23 April 2026
Excerpt from Lim & Tan Securities report
Report Summary
- Keppel Ltd (BN4): Keppel released its 1Q 2026 business update, showing resilient performance despite a volatile international environment. Net profit for New Keppel (excluding Non-Core Portfolio and Discontinued Operations) was slightly lower year-on-year. Strong performance in Infrastructure and Connectivity was offset by weaker Real Estate, which had benefitted from higher divestment gains in 1Q 2025. Recurring income improved, and overall free cash inflow was strong in 1Q 2026 compared to an outflow a year ago. The company is targeting to monetize S\$2–S\$3 billion of non-core assets in 2026 and has already announced S\$385 million so far. Market cap: S\$22bn. Current valuation: 21x PE, 2.1x PB, 3% dividend yield. Consensus target price: S\$13.38 (11% upside). Recommendation: Accumulate on weakness while awaiting further execution of Keppel 2030 vision.
- OUE REIT: Reported strong 1Q 2026 results with revenue and net property income up 6.7% and 8.4% YoY, respectively, driven by hospitality and resilient commercial operations. Significant reduction in finance costs (down 17.8% YoY) and continued portfolio resilience. Market cap: S\$2.0bn, trades at 0.66x P/B and 6.1% dividend yield. Consensus target price: S\$0.44 (20.5% upside). Recommendation: Accumulate due to value-unlocking efforts, low P/B, and decent yield.
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