Earnings Review: Keppel Hit a 12-Year High While SGX Slipped, How to Trade?
This week, two earnings were out with mixed results. $Keppel(BN4.SI)$ surged 6%, reaching a 12-year high, while $SGX(S68.SI)$ despite posting its strongest half-year results ever — saw its share price dip 0.6%.
Both delivered solid performance, so why did the market react so differently?
Keppel: surprising numbers, dividends and super CEO announcement
1. Strong fundamentals
Net profit in the second half rose 27.2%, bringing full-year earnings to S$1.1 billion. Its infrastructure and connectivity segments performed exceptionally well, aligning perfectly with the current AI data-center boom.
2. Attractive dividends
Total dividend for the year reached S$0.47, including a special payout. In today’s environment, a ~4.3% yield combined with growth potential looks compelling.
3. High-profile leadership (key factor)
Former DBS CEO Piyush Gupta has been appointed chairman-designate. Having led DBS to global prominence, his move to Keppel has sparked speculation — could Keppel evolve into the “DBS of asset management”?
SGX: record revenue but “sell-the-news”?
SGX’s half-year report was objectively strong:
Revenue hit a record S$736 million, and adjusted profit rose 11.6%. Yet the stock edged down 0.6%. Three main reasons explain this:
1. Expectation gap
Despite record revenue, results slightly missed elevated analyst expectations. For a quasi-utility heavyweight like SGX, failing to beat expectations often triggers short-term profit-taking.
2. Moderate headline profit growth
Reported net profit increased only 0.8% to S$342.7 million. Adjusted numbers were better, but the headline figure appeared less impressive.
3. Market sentiment rotation
CEO Loh Boon Chye noted capital is rotating from STI blue chips into mid-caps (with the iEdge Singapore Next 50 showing strong performance). This liquidity shift may temporarily weaken exchange stocks’ relative appeal.
Discussion:
-
How do you review SG earnings season?
-
Keppel chase risk: After a 12-year high, has the Piyush Gupta effect already been priced in?
-
SGX dip opportunity: Record revenue but a pullback — could this be a dividend investor’s entry point?
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Net profit in the second half rose 27.2%, bringing full-year earnings to S$1.1 billion. Its infrastructure and connectivity segments performed exceptionally well, aligning perfectly with the current AI data-center boom.
2. Attractive dividends
Total dividend for the year reached S$0.47, including a special payout. In today’s environment, a ~4.3% yield combined with growth potential looks compelling.
Keppel (SGX: BN4): The "Piyush Gupta Effect"
Keppel’s recent surge to a 12-year high of S$11.64 on 6 February 2026 suggests significant growth expectations are already reflected in its price.
SGX (SGX: S68): Dip Opportunity or Warning?
Despite posting its strongest half-year performance in 26 years, SGX shares pulled back to S$17.57 by 6 February 2026.
Keppel (BN4): Shares hit a 12-year high on the "Piyush Gupta effect" and a 39% jump in FY2025 profit. While the leadership news is largely priced in, analysts see further upside toward S$12.72+ as the company completes its pivot to a global asset manager.
SGX (S68): Despite record half-year revenue, a slight pullback occurred due to margin pressure from rising costs. This "dip" offers a defensive entry point for dividend seekers, supported by a committed 0.25 cent annual dividend hike through 2028.
Bottom Line: Investors are rewarding long-term structural shifts (Keppel) and sustainable yield growth (SGX), even as macro uncertainty keeps broad market gains in check.
For Keppel, the sudden surge seems to be based on hype, but it is indeed a value buy, promising both dividends and growth potential.
2. Yes the piyush Gupta effect has been priced in with increases in prices broadly
3. SGX dip opportunity, yes there is an opportunity to purchase at lower prices due to the dip in pricing
How do you review SG earnings season?
Keppel chase risk: After a 12-year high, has the Piyush Gupta effect already been priced in?
SGX dip opportunity: Record revenue but a pullback — could this be a dividend investor’s entry point?