Keppel Ltd: A Transformative Year with Promising Growth

Keppel Ltd reported a net profit of \$1,064 million from continuing operations for FY24, a 5% increase from the \$1,015 million recorded in FY23. This growth excludes the effects of its legacy offshore and marine (O&M) assets. The company delivered a Return on Equity (ROE) of 10.1%, compared to 9.5% in FY23.

All three segments—Infrastructure, Real Estate, and Connectivity—were profitable in FY24. The Infrastructure segment contributed 63% of the company’s net profit, generating stable recurring income. Meanwhile, the fast-growing Connectivity segment delivered 17% of net profit, seeing a 45% year-on-year growth in earnings. Keppel achieved recurring income of \$766 million, representing 72% of FY24’s net profit.

The company’s asset management business performed exceptionally well, with Funds Under Management (FUM) growing from \$55 billion to \$88 billion in FY24. Asset management fees rose by 54%, reaching \$436 million. Keppel also maintained its asset monetization momentum, achieving \$7 billion in announced monetizations since October 2020, including \$1.5 billion in 2024 alone.

The board proposed a final cash dividend of 19.0 cents per share for FY24, bringing the total dividend for the year to 34.0 cents per share. Keppel currently trades at a forward price-to-earnings (PE) ratio of 12.6x and price-to-book (PB) ratio of 1.1x, with a dividend yield of 5.1%. The consensus target price of S\$8.39 suggests a 26.5% upside from the current share price. Lim & Tan Securities recommends “Accumulate” on Keppel Ltd.

CNMC Goldmine: Capitalizing on Strong Gold Prices

CNMC Goldmine has significantly benefited from the surge in gold prices, which rose 27% in 2024 and continued their upward trend into 2025, reaching a record high of USD2,840 per ounce. This gold mining company, operating in Kelantan, Malaysia, has a market capitalization of S\$124 million and trades at 10.2x annualized PE and 2.1x PB, with a dividend yield of 4%.

The company sells gold at spot rates and has additional exposure to silver through the sale of lead concentrates. The higher average realized gold spot rate is expected to contribute significantly to its bottom line, especially in the second half of 2024, assuming extraction volumes remain constant. Lim & Tan Securities maintains a “Buy” recommendation on CNMC Goldmine.

Gold and Silver as Strategic Assets

Gold has seen a remarkable turnaround as a strategic asset, rising 27% in 2024 and continuing to perform well in 2025. It closed at US\$2,620 per ounce in December 2024 and is now trading at US\$2,840. Analysts forecast further gains, with predictions of US\$3,000 per ounce by Q4 2025.

Silver has also gained traction, rising more than 30% in 2024. Analysts highlight silver as a compelling alternative to gold, particularly given its industrial applications and historical outperformance when the gold-to-silver ratio is high.

Market Trends and Sector Highlights

Institutional investors showed strong net buying activity in stocks like Singtel (S\$76.0 million) and DBS (S\$28.4 million), while selling positions in Mapletree Industrial Trust (S\$36.5 million) and CapitaLand Integrated Commercial Trust (S\$23.1 million). Retail investors favored Mapletree Industrial Trust (S\$30.9 million net buying) and Seatrium (S\$19.8 million net buying).

Sector-wise, institutional investors increased allocations to technology and telecommunications, while reducing exposure to REITs and financial services. Retail investors demonstrated similar trends, favoring technology and utilities.

Dividend Announcements

Key dividend announcements include:

• LHN Ltd: 1 cent final dividend, ex-dividend date 6 Feb, payable 21 Feb.
• Micro Mechanics: 3 cents interim dividend, ex-dividend date 6 Feb, payable 18 Feb.
• AIMS APAC REIT: 2.4 cents dividend for Oct-Dec 2024, ex-dividend date 7 Feb, payable 26 Mar.
• Nam Lee Pressed Metal: 1.5 cents final and 0.5 cents special dividend, ex-dividend date 11 Feb, payable 21 Feb.