Keppel Ltd: 1H26 briefing takeaways

Research evidence excerpt

Keppel Ltd: 1H26 briefing takeaways

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

30 July 2026

Keppel Ltd Overweight

KPLM.SI, KEP SP

1H26 briefing takeaways Price (29 Jul 26):S$12.00

Price Target (Jun-27):S$12.05

Key takeaways from KEP’s 1H26 results (link) briefing include: (1) faster-than- Singapore/ASEAN Property and

expected FUM growth, (2) an Apollo-backed rig monetisation framework, (3) REITs

resilient Infrastructure earnings despite lower power spreads, (4) improving Mervin Song, CFA AC

visibility on recurring earnings, (5) accelerating deployment opportunities in (65) 6882-7829

digital infrastructure and the energy transition, and (6) M1 cost restructuring and mervin.song@jpmorgan.com

consolidation optionality. We came away incrementally more positive on KEP’s Terence M Khi

transformation into a global asset manager. Management has exceeded its end- (65) 6882-1518

2026 FUM target ahead of schedule, established a clear pathway to monetise up to terence.ml.khi@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/

S$3.7bn of legacy rigs, and delivered strong recurring earnings growth despite a J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

volatile macro backdrop. The rig transaction is particularly significant as it Morgan Broking (Hong Kong) Limited

accelerates non-core monetisation, increases fee-paying FUM, and creates future

special dividend potential, while reducing balance sheet drag from legacy assets.

We also received investor questions on the ~4% decline in KEP’s share price today

(STI -0.6%). In our view, this reflects negative headlines around weaker headline

net profit and commentary that non-core impairments are hindering KEP’s efforts

to shed its conglomerate identity (link), rather than any adverse developments from