Keppel Corporation Limited (SGX: BN4) is one of the cool companies which shares its quarterly earnings webcast (the link is here). Keppel Corp organizes its business into four different units: Offshore and Marine (O&M); Infrastructure; Property; and Investments. These business units houses various subsidiaries such as Keppel Telecom & Transport Ltd (SGX: K11) and Keppel Infrastructure Trust (SGX: A7RU). Both fall under Keppel Corp’s infrastructure umbrella. The company owns over 99% of real estate developer and investor Keppel Land following…
Keppel Corp organizes its business into four different units: Offshore and Marine (O&M); Infrastructure; Property; and Investments. These business units houses various subsidiaries such as Keppel Telecom & Transport Ltd (SGX: K11) and Keppel Infrastructure Trust (SGX: A7RU). Both fall under Keppel Corp’s infrastructure umbrella. The company owns over 99% of real estate developer and investor Keppel Land following its privatization offer in early 2015.
Keppel Corp also has stakes in investment firm K1 Ventures (SGX: K01), telecommunications outfit M1 Ltd (SGX: B2F), and oil and gas explorer KrisEnergy Holdings Ltd (SGX: SK3).
Prior to this, I had covered its Offshore and Marine sector, today we will look at the rest of the business units.
Without further ado, below are four useful things I learned from reading the latest quarter’s earnings transcript on Keppel Corporation:
- In his opening address, Keppel Corporation’s Chief Executive Officer Loh Chin Hua highlighted Asia’s growing urbanization. He cited information from the World Bank, saying that Asia’s urbanization is just beginning despite the migration of nearly 200 million people to its cities between 2000 to 2010. Loh felt that Keppel Corporation was well-positioned to capitalize on this trend.
- Keppel Corporation’s asset management business has grown assets under management from S$2 billion in 2006 to around S$26 billion by end-2015. The conglomerate’s move to consolidate its interest under Alpha Investment Partners is part of its strategy to focus and grow the business.
- The Property Division is off to a good start in 2016, selling 940 homes. Loh said it was mainly out of China. Forward looking, Keppel Land has about launch-ready 20,000 homes in its portfolio, mostly located in China. The Property segment continues to grow in importance, contributing 47% of the Group’s 2016 first quarter net profit.
- Meanwhile, Keppel Corporation is moving to own 100% of Keppel Land. The remaining 0.73% of total issued capital will be cancelled, after approval was given in an Extraordinary General Meeting.
If we are looking to own a company for the long term, we have to keep up with developments in the company.
The access to management teams via webcast gives the Foolish investor a fair chance to judge for themselves on whether they would like to be invested alongside the management teams that they have chosen. It also helps us put together a more complete thesis around the company and keep up with developments in its industry.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.