Keppel Ltd

BN4: XSES (SGP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SGD 2.20	Xwt	Nncccbbj

Keppel: No Major Surprise in Business Update; Shares Undervalued

Chokwai Lee

Apr 21, 2023

We see no major surprise in no-moat Keppel’s first-quarter 2023 business update, and keep our fair value estimate of SGD 7.00. While no detailed financial numbers are given, first-quarter net profit (excluding the SGD 3.3-billion disposal gain from the combination of Keppel Offshore & Marine and Sembcorp Marine) improved slightly year on year, due to better performance of the energy and environment, urban development, and connectivity segments. We believe Keppel remains undervalued, and a positive share price catalyst could come from the update of its transformation plans (including a new interim asset monetization target) in May 2023.

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