Broker: CGS International
Date of Report: July 28, 2026

Excerpt from CGS International report.

Report Summary

• Stock Focus: Keppel Ltd (KPLM.SI)
• Action: ADD (Maintain)
• Target Price: S\$13.52 (19.2% upside from current price S\$11.35)
• Key Ideas:
  • Keppel is on track to achieve its S\$2bn-3bn non-core asset monetisation target for FY26, having just monetised six rigs at S\$1.2bn.
  • About S\$1bn of realised divestments in 2026 year-to-date could result in a special dividend per share (DPS) of S\$0.05-0.08 on a 10-15% payout.
  • Further divestment of four additional rigs is expected over FY27-28, potentially bringing in S\$2.5bn more, with additional cash proceeds of S\$1.3bn.
  • Keppel will record an accounting loss of about S\$92m from the six rigs, but net gearing is expected to improve from 81% to 76%, leading to interest savings and 2-3% annual EPS accretion.
  • FY26F DPS forecast is S\$0.45 (includes ordinary and special dividends).
  • Re-rating catalysts include potential M1 divestment, asset sales (Keppel South Central, Keppel Bay plot 6), and new development projects (Bifrost Cable Systems).
  • Downside risks are slower asset monetisation and unplanned power plant shutdowns.

Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website: CGS International research website