Quick Read
- Keppel’s shares surged to S$12.12 on Monday, February 9, 2026, marking a 12-year high.
- The rally followed a 27.2% increase in Keppel’s second-half net profit, announced last Thursday.
- Phillip Securities raised its target price to S$13.80, while CGS International set its target at S$13.52, both maintaining positive ratings.
- Future earnings growth is expected from asset management fees, lower interest rates, and new infrastructure projects like the Keppel Sakra Cogen plant.
- Keppel projects FY2025 total dividends of approximately 47 Singapore cents per share, with the ex-dividend date set for April 27.
SINGAPORE (Azat TV) – Keppel Corporation’s shares surged on Monday, February 9, 2026, hitting their highest price in over 12 years on the Singapore Exchange. The significant rally, which saw shares climb as much as 4.1 percent to S$12.12, followed the asset manager’s announcement last Thursday of a 27.2 percent increase in second-half net profit, prompting multiple analyst firms to raise their target prices and reiterate positive ratings.
The surge extends a rally from the previous week, during which Keppel’s stock advanced 6.5 percent. On Friday, February 6, Keppel had closed at S$11.64, showing resilience even as the wider Straits Times Index experienced a slight dip. This robust performance underscores growing investor confidence in Keppel’s ongoing strategic transformation, which emphasizes an asset-light model focused on asset management and operational excellence.
Keppel Shares Surge Amid Strong Earnings
The immediate catalyst for Monday’s robust trading was Keppel’s announcement of strong second-half net profit for FY2025. This financial performance exceeded expectations for some analysts and reinforced the narrative of a company successfully navigating its pivot towards a more sustainable and capital-efficient business model. Over 3.1 million shares changed hands by mid-morning, indicating strong market interest.
The company’s shift involves divesting non-core assets and focusing on high-growth areas, including infrastructure, decarbonization, and sustainability solutions. This strategic realignment is designed to unlock value and generate more consistent earnings, a prospect that has resonated positively with market observers.
Analysts Signal Confidence with Target Price Hikes
Following Keppel’s earnings report, a flurry of analyst upgrades provided further momentum. Phillip Securities, for instance, raised its target price for Keppel by 13.1 percent to S$13.80 on Monday, maintaining its “buy” call. Paul Chew, head of research at Phillip Securities, cited expected tailwinds supporting the asset manager’s earnings growth.
Similarly, CGS International (CGSI) on Friday lifted its target price by 6.4 percent to S$13.52, keeping an “add” call. CGSI analyst Lim Siew Khee noted that Keppel’s H2 net profit surpassed expectations and highlighted a potential special dividend as a long-term share price catalyst. Citi Research also maintained its “buy” call on Sunday, assigning a target of S$13.17, with analyst Brandon Lee pointing to Keppel’s confidence in monetizing non-core assets and achieving its funds under management target. UOB Kay Hian’s Adrian Loh likewise bumped his target price to S$13.23 from S$11.70, describing the FY2025 results as “strong” and emphasizing a “meaningful” boost to return on equity.
Strategic Shifts and Future Growth Pillars
Analysts anticipate that Keppel’s underlying earnings will continue to grow, with Phillip Securities projecting a 15 percent year-on-year increase to S$909 million for New Keppel. This growth is expected to be supported by several key drivers. Asset management fees and lower interest rates are seen as crucial pillars for the real estate segment. Furthermore, the infrastructure segment is poised for significant contributions from new projects.
These include the Keppel Sakra Cogen power plant, which is set to become operational in the first half of 2026 and is already fully contracted for 2026 and 2027. The completion of the Hong Kong and Tuas Nexus Integrated Waste Management Facility plants in 2026 is also expected to bolster earnings in the decarbonization and sustainability solutions segment. The execution of a substantial S$7.1 billion contract backlog in this segment is projected to drive earnings through 2026 and 2027, according to CGSI analyst Lim Siew Khee.
Dividend Expectations and Asset Monetisation Drive Focus
A key focus for investors remains Keppel’s strategy to monetize non-core assets and the associated dividend payouts. Keppel is guiding for FY2025 total dividends of approximately 47 Singapore cents per share, representing a 38 percent jump over FY2024. The company has outlined a clear timeline for these payouts: the annual general meeting is scheduled for April 17, with the ex-dividend date on April 27, the record date on April 28, and payment slated for May 8.
The successful divestment of non-core businesses is central to Keppel’s ‘asset-light’ narrative. While the proposed sale of M1’s telco business has been “a bit delayed” due to regulatory approvals, CEO Loh Chin Hua expressed confidence in its eventual closure. On the real estate front, Keppel South Central, a non-core asset, is earmarked for monetisation once its occupancy, currently at 50 percent, stabilizes. The company’s ability to execute these divestments efficiently and at favorable prices will be crucial for maintaining investor sentiment and delivering on its payout promises.
The confluence of robust earnings, widespread analyst confidence, and clear strategic execution in asset management and infrastructure projects underscores a pivotal moment for Keppel, as it solidifies its transformation into a high-growth, asset-light entity, with significant shareholder returns tied to its ongoing divestment program.