Iggy's Journal: Maybank Just Put a $13 Target on Keppel, Betting the Old Conglomerate Story Is Over

2 September 2026, AM

Analyst Rating

Maybank Research has initiated coverage on Keppel Ltd (BN4) at Buy with a S$13.00 target price. The case rests on Keppel's shift away from a traditional conglomerate model toward asset management and infrastructure operations, spanning power generation, data centres, cooling, and subsea connectivity. Maybank's thesis is that this produces more recurring, capital-light earnings than the old business mix, supported by ongoing asset recycling that frees up capital for growth.

The numbers behind the call: FY25 to FY28 earnings growth of 10% to S$1.37 billion, asset management fees rising 17%, recurring income growing at a 12% CAGR, and core ROE improving from 19% to 23%. Maybank's sum of the parts splits value 52% operating businesses, 40% asset management, the remainder non-core. Forecast dividends are 42, 45, and 49 cents for FY26E, FY27E, and FY28E. Maybank flags slower asset recycling, weaker power spreads, softer digital demand, and non renewal of concessions as the key risks. Worth repeating, these are broker forecasts, not Keppel's own guidance.

My Personal Take

The dividend forecast is the number that actually catches my eye here, not the target price. My own numbers currently have Keppel sitting in my most cautious tier purely on distribution, the trailing payout still falls well short of what I look for. Maybank's 42 cent forecast for next year would be a real step up from that. If it lands, it changes the picture. If it doesn't, the capital light story still has to prove itself in the dividend, not just in the earnings growth line.

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖

Iggy's Journal: UOB Kay Hian Says DBS Is Too Expensive. My Screen Says the Real Problem Is the Yield

2 September 2026, AM

New Video

New video is up. UOB Kay Hian and a blended fair value model looked at the same DBS share price this week and landed in different places. UOB Kay Hian calls the 2.97 times 2027 price to book stretched and trimmed its stance. The blended model puts fair value at S$85 against a S$76.85 price, still room to run on that read. Both are defensible on their own terms. Neither one answers the question a retirement portfolio actually needs answered.

My Personal Take

The number I keep coming back to is the yield, not the multiple. A fresh buyer at S$76.85 locks in 4.18%, short of my 4.7% hurdle. Someone who bought DBS years ago at S$30 is sitting on the same dividend and a yield closer to 10.6% on their original capital. Same stock, same payout, two completely different income realities depending on when you got in. Iggy's Forensic Zone: Zone 4, Caution. November earnings, and whatever dividend comes with them, is where this arithmetic moves next.

📺 https://youtu.be/3udV6XvlZYo

📩 https://investingiguana.com/p/uob-kay-hian-says-dbs-is-too-expensive

Get everything, zero-day access on both platforms, full Red Zone watchlist, institutional-grade cheatsheets, with Iggy's Elite Investors, S$12/month.

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖