According to the Business Times Singapore, Keppel Corporation Ltd posted six years high FY2021 net profit of S$1 billion. Keppel corporation also announced its plan to purchase up to S$500 million of its shares through market purchases after the share purchase granted by the shareholders at the company’s annual general meeting.
Keppel’s 2021results also beat the expectations of many analysts, leading to most raising their fair value estimates for the cooperation. Keppel remains an excellent investment with its diversified business while its 2030 vision continues to unlock the value of its assets.
Even with the high dividend and the share buyback plan, Keppel is expected to remain a healthy investment. It invests in different growth initiatives such as decarbonication and renewables solutions to help improve returns. Find out more on the best dividend paying stocks in Singapore
About Keppel Corporation
Founded on August 3, 1968, Keppel Corporation has its headquarters in Singapore. It is an investments holding and management company that provides offshore and marine engineering and construction services. The Corporation operates in the following segments:
- Urban development
- Offshore and Marine
- Infrastructure
- Connectivity
- Asset management
- Corporate and other
The offshore and Marine sectors involve offshore production facilities and drilling rigs, design, construction, fabrication and repair, and specialized shipbuilding ship conversions and repair. On the other hand, the infrastructure segment involves power generation, environmental engineering, renewables, infrastructure operation, and maintenances.
The Urban Development segment includes property development, investing, and master development, while the connectivity segment involves the provision of telecommunication services and retail sales of telecommunications accessories and equipment. It is also engaged in providing logistic solutions and developing and operating data centers.
Keppel’s Asset Management segment involves the management of private funds, real estate investment trusts, and business trusts. The corporate and other segments have treasury options, investment holdings, research, marine engineering, and developments, among other supported services.
- Employees: 16,393
- Sector: Diversified Investment Holding Companies
- Sales volume or Revenue: 8.62 B
- Industry: Business/Consumer Services
- 1Y Sales Change: 31.19%
- Fiscal Year Ends: December 31
Share Price
Keppel’s Corporation’s current share price is:
- SGD 6.590 +0.010 / +0.15%
- Share Value as of: 2022-04-11 12:27
- Market / ISIN Code: SGX Mainboard / SG1U68934629
- Sector / Industry Group / Industry: Industrials / Capital Goods / Industrial Conglomerates/construction services
The graph information comes from SGinvestors.io on Apr 27, 2022.
There was a considerable dividend dip from its peak in 2018 to 2.88%. The Corporation has since recovered with a 3.65% yield rate of S $0.19 in 2021. There is hope that its dividend payout will improve this financial year.
What Do Analysts Say?
According to analysts, Keppel Corporation LTD share price has appreciated by 18%. This is based on its closing price of S$6.08 on February 17th, 2021, and has significantly outperformed the Straits Times Index.
The main reason for the excellent performance in the earnings in FY2021, during which the group reported a net profit of S$1.02b, which is the highest in the past six years. The revenue was a sharp reversal from the FY20 net loss of S$506m.
The Corporation’s income grew 33% y-o-y. It contributed S$292m to the group’s net profit for FY21, which was contributed by Keppel Corporation’s stake in REITs and Trust infrastructure management and asset management company.
Analysts say that the market is also receptive to the Corporation’s announcement of a sizeable final dividend of S$0.21 per share that reflected the success of the asset monetization programs and the S$500m buyback program that allowed the purchase of a maximum of 2% of Keppel Corporation issued shares.
Is Keppel a Good Stock to Buy?
We believe that Keppel is an excellent stock to buy, currently underpinned by its diversified business. Its vision 2030 strategy continues to unlock the most value for its assets. Its 2021 net profit of S$1.02 billion beat our expectations, mainly due to a higher-than-expected fair value gain from the investment.
Related Questions
Who Owns Keppel Corporation?
Keppel Corporation is owned by Temasek Holdings, a Singapore sovereign wealth fund and the current largest minority shareholder.
How Do I Buy Keppel Corporation Shares?
If you want to buy Keppel Corporation shares, here are the steps to follow:
- Choose a trading platform that matches your needs
- Open an online brokerage account
- Fund your account
- Do extensive research on the stock
- Purchase your stocks
- Check-in on your stocks often
Find out more about opening a brokerage account in Singapore.
Closing
Based in Singapore, Keppel Corporation is one of the world’s largest offshore rig builders, and they build and repair and build world-class oil rigs for gas and oil explorations. Over time, the cooperation has diversified its business with its vision 2030 business strategy. This has led to a high dividend yield over time, making it an excellent company to invest in.
Key Takeaways
- Keppel’s earnings have greatly improved even after a dip in the past.
- Keppel’s financial position is expected to remain healthy despite the higher dividend and share back plan.
- Keppel aims to conclude the divestment of its logistics business in Southeast Asia and Australia by the end of the first quarter of 2022. This could be a positive catalyst for Keppel’s share price performance.
If you are looking for a loan, Loan Advisor got your back! Contact us now, and we will respond promptly with different quotes from top money lenders in Singapore that match your needs.
