Reward 500 Tiger-coinsThis 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:
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How do you review SG earnings season?
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Keppel chase risk: After a 12-year high, has the Piyush Gupta effect already been priced in?
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SGX dip opportunity: Record revenue but a pullback — could this be a dividend investor’s entry point?
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Comments
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?
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.
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 (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.
On the other hand, $SGX(S68.SI)$ delivered record revenue and solid adjusted profit, yet the stock dipped slightly. This seems to reflect elevated expectations, moderate headline profit growth, and ongoing rotation of capital from STI blue chips into mid-caps.
For me, Keppel is worth watching but I’d wait for consolidation before chasing further upside. SGX’s slight dip could present a good entry point for dividend-focused investors, given its consistent performance and stable payout.
@Tiger_comments @TigerClub @TigerStars @Tiger_SG
Keppel: After a 12-year high, much of the transformation and leadership confidence appears priced in. The re-rating reflects its asset-light pivot and recurring income visibility. Upside now likely depends on execution and earnings delivery rather than further multiple expansion. Chasing momentum at current levels carries higher risk unless new catalysts emerge.
SGX: Record revenue but share pullback looks macro-driven, mainly from falling rate expectations reducing interest income tailwinds. Core business remains strong with predictable cash flow and dividend visibility. For income investors, dips may represent gradual accumulation opportunities rather than a structural concern.