Broker: CGS International
Date of Report: July 29, 2026

Excerpt from CGS International report.

Report Summary

Stock: Keppel Infrastructure Trust (KIT SP)
Action: Add (Buy)
Target Price: S\$0.61
Current Price: S\$0.54
Upside: 13.0%

• Key Idea: CGS International maintains an Add (Buy) rating for Keppel Infrastructure Trust (KIT), with a higher blended target price of S\$0.61. The call is supported by the trust’s resilient distributable income (DI), visible growth from new and enlarged assets, and steady distribution yield of 7.4%–7.5% over FY26–28F.
• Highlights:
  • 1H26 DPU of 1.99 Scts (+1.0% yoy) was in line, forming 50.5% of FY26F estimate, underpinning continued DPU growth.
  • DI in 1H26 was S\$101.1m, down 15.3% yoy due to the absence of a divestment gain; excluding this, DI rose 1.2% yoy. FFO grew 14.0% yoy, driven by renewables, Ixom, and digital infrastructure.
  • Renewables and digital assets offset fuel cost under-recovery at City Energy and lower Environmental Services contributions. Incremental earnings are expected from enlarged KMC stake, full-year GMG contribution, and Ventura’s Crown Coaches acquisition.
  • FY26–28F DI, EBITDA, and EPS were revised, factoring in KMC’s increased stake and potential fuel cost under-recovery. DPU forecasts remain steady at 3.98–4.06 Scts, indicating strong yield.
  • KIT’s portfolio is seen as defensive with contracted cashflows and active capital recycling. Key risks are adverse weather for renewables, volatile spot energy costs, and policy changes.
  • ESG: KIT demonstrates strong governance and progress in renewables, aiming for net zero Scope 1 & 2 emissions by 2025 and 2GW renewables by 2030, supporting its sustainable infrastructure positioning.
• Actionable Insight: Investors are advised to Add/Buy KIT for stable and growing distributions, underpinned by resilient core earnings, visible growth drivers, and a strong ESG narrative. Target price is S\$0.61, implying a 13% upside from current levels.

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