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Keppel
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Keppel Corp
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vicloo
Supreme |
04-May-2023 17:52
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Closing at 6.5, 1mth High despite post ex-div! Charging to 7.
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Joelton
Supreme |
04-May-2023 13:36
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Keppel Corp sets &lsquo ambitious&rsquo interim AUM target of $100 bil by end-2026, embarks on major reorganisation
Keppel Corp BN4 0.00% has announced the next phase of its Vision 2030 plans to drive its further transformation from a conglomerate into a global alternative asset manager with deep operating capabilities.
 
Moving forward, the company&rsquo s group structure will be simplified to form a horizontally integrated model comprising three platforms &mdash fund management, investment and operating platforms &mdash all part of one integrated business focused on investing in and creating solutions for a sustainable world, Keppel says in a filing.
 
&ldquo This latest restructuring reflects a fundamental shift in how we organise ourselves to operate in a nimbler manner and harness technology to grow at speed and scale,&rdquo says Keppel CEO Loh Chin Hua.
 
To drive its growth, Keppel plans to significantly scale its assets under management (AUM) to $200 billion by 2030. It had also set an interim target of $100 billion in AUM by end-2026, double the $50 billion AUM it had at end-2022.
 
Additionally, the company will continue its asset monetisation programme which includes unlocking value from its sizable landbank. Beyond the current $3 billion to $5 billion asset monetisation target &mdash which Keppel achieved ahead of schedule &mdash the company will work towards a cumulative $10 billion to $12 billion asset monetisation target by the end-2026
 
Proceeds from the asset monetisation programme will be invested in new growth engines leveraging Keppel&rsquo s asset-light model, aside from being used to reward shareholders.
With the simplification of its structure as well as integration of business units into one operating platform, Keppel can realise significant synergies, including through centralising and optimising its support functions. This would enable cost-efficient and scalable AUM growth empowered by technology and automation. These initiatives are expected to translate into annual savings of $60 million to $70 million by 2026.
 
The reorganisation will be progressively implemented over the next 12 to 18 months. In line with the pivot from a conglomerate to a global asset manager and operator, Keppel&rsquo s new horizontally integrated operating model will be reflected in how the company reports on its financial performance.
 
This will commence from the 1HFY2023 financial results, with additional disclosures to help the market better understand and value the company.
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Wind888
Senior |
04-May-2023 09:25
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Keppel appeals for stronger valuations with reorganisationKEPPEL Corporation : BN4 +2.09%  will simplify its organisational structure into a new &ldquo horizontally integrated operating model&rdquo amid plans to transform into a global alternative real asset manager. The reorganisation will remove the group&rsquo s conglomerate structure in favour of one which comprises fund management, investment and operating platforms, Keppel said on Wednesday (May 3).  Keppel Corp chief executive Loh Chin Hua said the group&rsquo s business model allows it to earn different streams of recurring fee income, which will enhance earnings resilience.  Coupled with faster capital recycling, we will be able to scale up and drive the group&rsquo s growth without relying just on our balance sheet, allowing us to expedite the achievement of our 15 per cent return on equity target, he added. At the company&rsquo s media and analyst briefing, Loh appealed to analysts to reassess the way they value the company.  &ldquo I think that having the conglomerate structure doesn&rsquo t necessarily help us because it gives analysts another reason to value us as a conglomerate, so I think we want to change that,&rdquo he said. The fund management platform will focus on raising capital, while the investment platform will decide on how capital is deployed. The operating platform, meanwhile, will be created by integrating Keppel&rsquo s existing business units to drive further collaboration and synergies. This platform will also strengthen its engineering capabilities, technical know-how and drive innovation.  Loh noted that the company will benchmark itself against the best global asset managers in the world. Still, he added that the company is &ldquo unique&rdquo for its capabilities in three horizontals &ndash the infrastructure, real estate and connectivity sectors.  &ldquo What Keppel offers is quite unique. It&rsquo s one package &ndash an ability to invest, operate and manage this group of assets, that are real assets, with a very strong asset-management track record,&rdquo he said.  He also said that the reorganisation will give the company an opportunity to value-add to its assets across its business segments. He cited the example of the green hydrogen that Keppel Infrastructure has been sourcing. It will be readily taken by Keppel Telecommunications & Transportation as part of its data centre portfolio. With the restructuring, the company would like to emphasise the importance of its recurring income across its three horizontals, Loh added. &ldquo This is, again, part of our Vision 2030. As we move away from lumpy profits, we want to move more and more into earnings that are recurring, that will attract a higher multiple, rather than the market valuing (us) using price-to-book, or discount to real net asset value.&rdquo The group expects the new initiatives to translate into S$60 million to S$70 million in annual savings by 2026. It will progressively implement the reorganisation in the next 12 to 18 months. The restructuring will also look at Keppel&rsquo s legal structures, its internal processes and how its support functions can be further centralised and optimised, said Loh. Across the group, management incentives are also being refreshed to ensure closer alignment with the group&rsquo s overall performance and with the interests of Keppel&rsquo s shareholders and investors. Keppel plans to &ldquo significantly scale&rdquo its assets under management to S$200 billion by 2030, with a S$100 billion target by the end of 2026. This is double its S$50 billion in assets under management recorded at the end of 2022.  It will continue to monetise its assets, with a goal to reach an asset monetisation of S$10 billion to S$12 billion by the end of 2026. This includes &ldquo unlocking value&rdquo from the group&rsquo s sizeable land bank.  Loh said: &ldquo Just to be clear, I love the land bank because it&rsquo s really a (form of) value... It&rsquo s just that it doesn&rsquo t quite fit what we&rsquo re trying to do, so the question is, how do we monetise it? &ldquo Until it is monetised, the land bank sits on the balance sheet, produces no income (and) has a lot of holding costs. By virtue of the fact that we can monetise the land bank, we can reinvest into recurring income. That in itself will improve our returns.&rdquo Keppel said it will invest the proceeds from asset monetisation into new growth engines, leverage its asset-light model, and reward shareholders.  Loh noted that the company has been consistently paying out between 50 per cent and 60 per cent of its earnings, and he does not expect that to change, barring any external environment changes. |
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newbie19
Supreme |
03-May-2023 22:14
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Very close 😊 😊 👍
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newbie19
Supreme |
03-May-2023 21:50
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Really? 😆 😆 😆
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vicloo
Supreme |
03-May-2023 20:04
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7 within next 2-3 weeks I bet 👍 👍 👍 👍
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beetlejuice
Master |
03-May-2023 20:01
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6.40 + 0.13*19.08 = $8.88 (2 dp) & not counting the 18 cts dividend.
Auspicious. 💰 🧧
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Observers
Elite |
03-May-2023 19:03
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Zhun bo? Divident in species?
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Wind888
Senior |
03-May-2023 15:16
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Wah, another bonus if true. 
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Sg_KoalaDreaming
Master |
03-May-2023 14:54
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hearsay coffee shops talk about relisting Keppel Land again    as part of the monetisation assets move.
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FATABA
Supreme |
03-May-2023 13:20
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Cant agree more ......this conversion to a capital company ..Kep is certainly worth more ( soon many broking house will do a REvaluation )  Assets monetisation is moving forward wll.  More so having a big POOL of recurring income from its AUM ( which I have written several times...) to  drive its growth, Keppel plans to significantly scale its assets under management (AUM) to $200 billion by 2030. It had also set an interim target of $100 billion in AUM by end-2026, double the $50 billion AUM it had at end-2022. Certainly the payout of 33c a year would be no issue ( or even more haha)  Dyodd
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beetlejuice
Master |
03-May-2023 13:11
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A management which is mindful of shareholders' interest plus a great business.
This is the type of business to invest in & then wait for multi bagger returns. While waiting, get treated with generous dividends. 💰 🧧
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Wind888
Senior |
03-May-2023 12:59
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In most of LCHs speech, he always talk about returning value to shareholders, hopefully we will receive Special Div again soon. 
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FATABA
Supreme |
03-May-2023 10:05
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Sound music to the ears.............Proceeds from the asset monetisation programme will be invested in new growth engines leveraging Keppel& rsquo s asset-light model, aside from being used to reward shareholders.
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Wind888
Senior |
03-May-2023 09:27
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Keppel Corp sets &lsquo ambitious&rsquo interim AUM target of $100 bil by end-2026, embarks on major reorganisationKeppel plans to significantly scale its AUM to $200 billion by 2030.
Keppel Corp  BN4  has announced the next phase of its Vision 2030 plans to drive its further transformation from a conglomerate into a global alternative asset manager with deep operating capabilities.
Moving forward, the company&rsquo s group structure will be simplified to form a horizontally integrated model comprising three platforms &mdash fund management, investment and operating platforms &mdash all part of one integrated business focused on investing in and creating solutions for a sustainable world, Keppel  says in a filing. &ldquo This latest restructuring reflects a fundamental shift in how we organise ourselves to operate in a nimbler manner and harness technology to grow at speed and scale,&rdquo says Keppel CEO Loh Chin Hua. To drive its growth, Keppel plans to significantly scale its assets under management (AUM) to $200 billion by 2030. It had also set an interim target of $100 billion in AUM by end-2026, double the $50 billion AUM it had at end-2022. Additionally, the company will  continue its asset monetisation programme  which includes unlocking value from its sizable landbank. Beyond the current $3 billion to $5 billion asset monetisation target &mdash which Keppel achieved ahead of schedule &mdash the company will work towards a cumulative $10 billion to $12 billion asset monetisation target by the end-2026  Proceeds from the asset monetisation programme will be invested in new growth engines leveraging Keppel&rsquo s asset-light model, aside from being used to reward shareholders. With the simplification of its  structure as well as  integration of business units into one operating platform, Keppel can realize significant synergies, including through centralising and optimising its  support functions. This would enable cost-efficient and scalable AUM growth  empowered by technology and automation. These initiatives are expected to translate into annual savings of $60 million to $70 million by 2026. The reorganisation will be progressively implemented over the next 12 to 18 months. In line with the pivot from a conglomerate to a global asset manager and operator, Keppel&rsquo s new horizontally integrated operating model will be reflected in how the company reports on its financial performance. This will commence from the 1HFY2023 financial results, with additional disclosures to help the market better understand and value the company.   |
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beetlejuice
Master |
03-May-2023 09:11
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Yeah. 💰 🧧
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beetlejuice
Master |
03-May-2023 09:11
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Congrats bro, Keppel, SCI & Seatrium 龙 众 huat. 💰 🧧
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Christrade
Member |
03-May-2023 08:59
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Huat ah! All KC bros and sisters!
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FATABA
Supreme |
03-May-2023 08:57
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All good news .  Catalyst in the near term could be the sale of some rigs in asset comp  Dyodd
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beetlejuice
Master |
03-May-2023 08:37
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(Reuters) - Singapore's Keppel Corp said on Wednesday it will reorganise its corporate structure and do away with its conglomerate structure in favour of a horizontally integrated model comprising three units, to simplify operations. 💰 🧧
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  as part of the monetisation assets move.