From Phillip

Maintain BUY with unchanged SOTP target price of S$7.07

We maintain our BUY recommendation with an unchanged SOTP TP of $7.07. While the recent developments have been positive for the Group, we have opted to keep our TP unchanged until

the relevant regulatory and shareholder approvals have been obtained. We valued the Group

based on the four new segments unveiled during Vision 2030 to better reflect the Group’s

reporting segments going forward (Figure 2). For its Energy & Environment business, we valued

its O&M division at 0.8x book value. Keppel Infrastructure Holdings is valued at 10x FY22e

earnings. For its Urban Development segment, we applied a 40% discount on Keppel Land’s

RNAV and 1.5x price to book value of the Sino-Singapore Tianjin Eco-City. In the Connectivity

segment, we valued M1 at 9x FY22e earnings. For the Asset Management division, we valued

Keppel Capital at 10x FY22e earnings, a slight discount to its peers. We also applied a holding-

company discount of 20% to the Group.