Broker Name: CGS International
Date of Report: April 23, 2026
Excerpt from CGS International report.
Report Summary
- Stock Focus: Keppel Ltd (KEP SP)
- Action: Add (Buy)
- Target Price: S\$13.52 (current price: S\$12.03; upside 12.4%)
- Highlights:
- Keppel aims for S\$2bn-3bn asset monetisation in FY26F, excluding M1. This target is underpinned by improving rig demand and a strong deal pipeline.
- Potential for special dividend (18-23 Scts) if monetisation targets are met.
- Infrastructure segment benefits from post-war spark spread uplift (+S\$20 YoY) and longer-term PPAs; gas cost increases largely passed through to customers.
- Limited downside from Middle East conflict; operations in Qatar and Saudi Arabia not directly affected.
- Key re-rating catalysts: Completion of M1 divestment, further asset monetisation, and higher power spark spreads.
- Downside risks: Delays to M1 divestment and slower monetisation pace.
- Implications: Investors should accumulate Keppel Ltd on any weakness, with an eye on asset monetisation progress and dividend upside.
- Ticker: KEP SP
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
