Keppel eyes better market valuation as it sheds ‘conglomerate discount’

[SINGAPORE] Global asset manager Keppel is eyeing a better valuation from the market, as the company sheds the “conglomerate discount” with its ongoing transformation, said chief executive Loh Chin Hua.

“Keppel is no longer ascribed a conglomerate discount by most analysts covering us. As we strive to achieve our goals… we hope the market will ascribe an appropriate growth multiple to the new Keppel,” he said in the company’s annual report, released on Friday (Mar 28).

Keppel used to be known mainly as an offshore rig builder, property developer and infrastructure contractor with independent verticals, Loh noted. But it has since reshaped itself as an asset manager under the Vision 2030 strategy, launched five years ago.

Trading at 15.1 times earnings as at Thursday, the company now focuses on investment strategies including energy, environmental infrastructure, data centres and private credit.

“Importantly, we have demonstrated our ability to do more with less,” said Loh, noting that Keppel’s total assets fell by 14 per cent over the past four years to S$27.7 billion as at end-2024.