Keppel Corp - Good Dividend Yield with Upside

I would go for $KEPPEL CORPORATION LIMITED(BN4.SI)$  since the most Tiger friends would choose local banks.

The divestment of $SEMBCORP MARINE LTD(S51.SI)$  heralds a new era for Keppel Corp as it continues its journey towards an asset light model. This includes Keppel transforming its Urban Development business, focusing on real-estate-as-service solutions. With the lifting of COVID-19 measures, one may see recovering sentiments and potentially better performance of its Urban Development business.

While Keppel’s FY22 net profit is marginally lower than FY21, it is attributed to partial impairment and lower earnings in Urban Development (which may show recovery in FY23). Generally, Keppel has shown good progress and is on track to unlocking even more value.

The current yield of over 6% is attractive (much better than T-Bill, SSB and fixed deposit) and we may see more upside as Keppel seizes opportunities in multiple areas, such as 

1. Energy & Environment - capturing opportunities in renewables (e.g. onshore wind assets), clean energy and decarnonisation solutions 

2. Scaling up renewables & solutions - collaboration with various government agencies (e.g.NEA, JTC) to explore and pilot green solution 

3. Advances in real-estate transformation - monetising land bank in China and Vietnam aswell as pivoting towards providing real estate-as-a-service, including exploring senior living projects 

4. Connectivity solutions - continual expansion in data centres portfolio (which will continue be in demand in this digitalisation era) and roll-out of 5G solutions which is a positive catalyst for M1. 

5. Improving O&M outlook - better prospects with rise in oil price and improvement in orderbook. 

Definitely a company to put on your watchlist after the divestment. Happy to hear your thoughts [Happy] 

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