Broker: OCBC Group Research
Date of Report: 31 July 2026
Excerpt from OCBC Group Research report.
Report Summary
Stock: Keppel Ltd (KEP SP EQUITY)
Action / Call: BUY
Target Price (Fair Value): SGD 13.60
Last Close: SGD 11.48
Key Highlights & Actionable Insights:
- Buy rating maintained with a fair value target price of SGD 13.60, implying significant upside from the current price. The stock is supported by strong performance in core businesses and ongoing transformation into a global asset manager and operator.
- 1H26 revenue grew 24.6% year-on-year to SGD 3.8b, driven by Infrastructure and Connectivity segments. Excluding one-off non-core losses, underlying net profit rose 25% year-on-year to SGD 530m, demonstrating the resilience of core operations.
- Asset monetisation programme remains on track with SGD 1.7b announced year-to-date and a FY26 target of SGD 2-3b. Proceeds are allocated to debt reduction, growth investments, and shareholder returns.
- Funds Under Management (FUM) expanded to SGD 106b, surpassing the interim 2026 target ahead of schedule. The company aims for SGD 200b in FUM by 2030.
- Dividend maintained at 15.0 Singapore cents per share for 1H26, reflecting management’s confidence in recurring income streams.
- Key catalysts: Further accretive acquisitions, continued asset monetisation, and a rise in property prices in core markets could drive upside. Risks include macroeconomic factors, property regulations, and execution risks.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website.
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