Company Coverage
Keppel (KEP SP): 1H26: Core Earnings In Line, Rising 16.6% yoy; Expect A Strong 2H26 Underpinned By KSC Contribution
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$11.43
S$13.26
15.5%
S$13.23
Analyst
Highlights
- Keppel’s 1H26 core earnings of S$401m (+16.6% yoy) were broadly in line with our expectations, at 42% of our full-year forecast.
- We expect stronger 2H26 core earnings for Keppel, at S$545m (+22.2% yoy), driven by the full half-year contribution from the KSC power plant.
- Fundamentals remain positive, as Keppel continues to divest its non-core assets, while scaling its fund management business towards its 2030 goals.
Maintain BUY; our updated target price of S$13.26 values Keppel at 18.9x 2027F core earnings, adjusted for assets for divestments and net debt.
Analysis
Core earnings broadly in line, rising 16.6% yoy. Keppel reported 1H26 net profit of S$155m (1H25: S$378m). Excluding its non-core portfolio for
divestment, which were impacted by rig impairments and other operating and valuation losses, net profit of New Keppel rose 25.0% to S$530m in 1H26. Taking out non-recurring gains/(losses) from revaluation/ divestments, New Keppel’s core earnings rose 16.6% yoy to S$401m (1H25: S$344m).
Highlights
- Keppel’s 1H26 core earnings of S$401m (+16.6% yoy) were broadly in line with our expectations, at 42% of our full-year forecast.
- We expect stronger 2H26 core earnings for Keppel, at S$545m (+22.2% yoy), driven by the full half-year contribution from the KSC power plant.
- Fundamentals remain positive, as Keppel continues to divest its non-core assets, while scaling its fund management business towards its 2030 goals.
Maintain BUY; our updated target price of S$13.26 values Keppel at 18.9x 2027F core earnings, adjusted for assets for divestments and net debt.
Analysis
Core earnings broadly in line, rising 16.6% yoy. Keppel reported 1H26 net profit of S$155m (1H25: S$378m). Excluding its non-core portfolio for
divestment, which were impacted by rig impairments and other operating and valuation losses, net profit of New Keppel rose 25.0% to S$530m in 1H26. Taking out non-recurring gains/(losses) from revaluation/ divestments, New Keppel’s core earnings rose 16.6% yoy to S$401m (1H25: S$344m).
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$11.43
S$13.26
15.5%
S$13.23
Analyst
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