Keppel Ltd Takeaways from KEP’s M1 briefing

Research evidence excerpt

Keppel Ltd Takeaways from KEP’s M1 briefing

J P M O R G A N Asia Pacific Equity Research

18 May 2026

Keppel Ltd Neutral

KPLM.SI, KEP SP

Takeaways from KEP’s M1 briefing Price (15 May 26):S$10.60

Price Target (Jun-27):S$12.00

Key takeaways following IMDA’s suspension of the proposed M1–Simba Singapore/ASEAN Property and

consolidation (link) include details of M1’s restructuring and Keppel’s reiterated REITs

S$2bn–3bn divestment target for 2026. The failed M1 sale is disappointing. Mervin Song, CFA AC

However, as M1 remains a non-core asset, we continue to expect an eventual sale, (65) 6882-7829

with the 7–11 Scts special dividend tied to M1 likely deferred rather than canceled. mervin.song@jpmorgan.com

Going forward, KEP’s share price will be influenced by the delivery of the S$2bn– Terence M Khi

3bn divestment plan and/or whether a 3.5–4.0% dividend yield provides downside (65) 6882-1518

support, in our view. terence.ml.khi@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

• M1 restructuring. With the M1 divestment now delayed, KEP will implement Morgan Broking (Hong Kong) Limited

a 90-day plan to rationalize M1’s product suite, aiming to reduce technology

spend and cost to serve. Greater use of AI is expected to halve CRM and

campaign management costs by reducing reliance on third-party SaaS

providers. KEP, together with StarHub, also plans to cut network costs.

Management did not disclose the expected quantum of cost savings, headcount

reduction, or restructuring costs. With 5G now fully deployed, KEP expects

lower M1 capex going forward.

• Divestment plans. KEP remains open to divesting M1, even if this is delayed

by 1–2 years, as M1 will still be classified as a non-core asset. Management