Power Shines; FCF Misses: Keppel Ltd | Asia Pacific

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Power Shines; FCF Misses: Keppel Ltd | Asia Pacific

Update

July 30, 2026 02:47 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MKeppel Ltd | Asia Pacific Mayank Maheshwari

Equity Analyst

Power Shines; FCF Misses Mayank.Maheshwari@morganstanley.comRyan M Heng +65 6834-6719

Ryan.Heng@morganstanley.com +65 6834-6465

AlphaSignals Earnings Reaction Vivek Rajamani

Unchanged In-line Largely unchanged Vivek.Rajamani@morganstanley.com +65 6834-6740

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Morgan Stanley India Company Private Limited+

Source: Company data, Morgan Stanley Research Pranitha Shetty

Research Associate

Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Key Takeaways Hinal Choudhary

KEP's operating core earnings were in line with MSe with a 14% rise YoY in net Hinal.Choudhary@morganstanley.com +91 22 6118-2044

profit for 1H26; FCF (before divestments) missed estimates on higher working

capital.

Infrastructure vertical (inc. Power) EBITDA surprised and grew 9% YoY as the

new 600MW power plant started in May-26 and power spreads declined less

than estimates. Keppel Ltd (KPLM.SI, KEP SP)

Energy as a service accelerated to S$8bn, with a S$15bn pipeline, and remains ASEAN Energy and Materials | Singapore

underappreciated, in our view. Stock Rating Overweight

Industry View Attractive

The non-core portfolio with S$15bn in assets and a third of book value remains a Price target S$16.00

Up/downside to price target (%) 33

drag on the group, with $261mn of impairments across rigs, telcos and property. Shr price, close (Jul 29, 2026) S$12.00

52-Week Range S$13.11-8.01

A 15c/share interim dividend was in line with MSe. Keppel repurchased S$240mn Sh out, dil, curr (mn) 1,836