Keppel eyes better market valuation as it sheds ‘conglomerate discount’

Keppel Aims for Better Valuation as it Diversifies and Transforms

Keppel’s Evolution from Conglomerate to Asset Manager

Singapore-based global asset manager Keppel is seeking a better valuation from the market, as the company sheds its "conglomerate discount" with its ongoing transformation, said Chief Executive Loh Chin Hua.

From Conglomerate to Asset Manager

Keppel was once known mainly as an offshore rig builder, property developer, and infrastructure contractor with independent verticals. However, it has since reshaped itself as an asset manager under its Vision 2030 strategy, launched five years ago. The company has now focused on investment strategies including energy, environmental infrastructure, data centers, and private credit.

Demonstrating Efficiency and Cost Savings

Keppel has demonstrated its ability to do more with less, with its total assets falling by 14% over the past four years to S$27.7 billion as at end-2024. Loh noted, "We have shown that we can achieve our goals while reducing costs and increasing efficiency."

Seeking a Better Valuation

As Keppel’s transformation continues, the company hopes the market will ascribe a more appropriate growth multiple to its new identity. "Keppel is no longer ascribed a conglomerate discount by most analysts covering us. As we strive to achieve our goals, we hope the market will ascribe an appropriate growth multiple to the new Keppel," said Loh in the company’s annual report.

Conclusion

Keppel’s efforts to transform itself into an asset manager have been successful, and the company is now seeking a better valuation from the market. With its focus on investment strategies and cost savings, Keppel is poised for a stronger future.

FAQs

Q: What is Keppel’s current valuation?
A: Keppel is trading at 15.1 times earnings as at Thursday.

Q: What are Keppel’s main investment strategies?
A: Keppel focuses on energy, environmental infrastructure, data centers, and private credit.

Q: How has Keppel’s asset base changed over time?
A: Keppel’s total assets fell by 14% over the past four years to S$27.7 billion as at end-2024.