Looking ahead, Mak expects Keppel to see improvement in its earnings for the FY2024, which is likely to be derived from higher fund management fee income.
“With 60% of its energy-generating capacity locked in on contracts of more than three years, energy sales would provide a stable and recurring earnings base. The 600MW Keppel Sakra Cogen plant is 51% completed and expected to contribute from early FY2026,” she writes.
“The acquisition of a 50%-stake in Aermont Capital is expected to be completed by end-April 2024, bringing total funds under management to $79 billion. Aermont will be a launchpad for Keppel to access the sovereign wealth and pension funds in Europe,” she adds.
Mak’s target price remains unchanged at $7.98.
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As at 11.24am, shares in Keppel are trading 4 cents higher or 0.59% up at $6.86.
