Latest news with #BifrostCableSystem
Business Times
7 days ago
- Business
- Business Times
‘New Keppel' shows promise; M1 sale and green projects could stir more excitement
[SINGAPORE] Once the world's largest offshore rig builder, Keppel is doubling down on efforts to transform into an asset manager – most recently with its plans to divest a S$14.4 billion portfolio of non-core assets . The move carries the promise of a more streamlined focus and resilient earnings growth. Further catalysts that investors can look out for include the potential sale of M1's consumer mobile business, as well as Keppel's green energy projects, riding on the momentum of the Asean power grid. But whether investors will eventually re-rate Keppel to trade at the richer valuations of global asset managers – such as KKR and Blackstone – remains to be seen. In its latest earnings on Jul 31, Keppel announced that it will 'substantially' monetise a portfolio of non-core assets by 2030. The portfolio includes legacy offshore and marine assets, residential land bank, certain property developments and S$2.9 billion of embedded cash and receivables. The market is certainly upbeat. News of the divestment, coupled with a S$500 million share buyback, lifted Keppel's share price to a six-year high on Jul 31. At least 10 analysts now have 'buy' calls on Keppel, of whom seven have upgraded target prices in the past week. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up DBS Group Research analyst Ho Pei Hwa said that Keppel offers a 'unique and unrivalled proposition as a global asset manager', and upgraded her target price to S$10, from S$9 previously. She projects an 8 per cent compound annual growth rate for core earnings over the next two years, while noting that the company looks set to hit its target of S$100 billion in funds under management ahead of the 2026 deadline. Phillip Capital's research head Paul Chew expects an 'earnings spurt' over the next two to three years. He sees growth in 2026 being driven by three projects: real estate development Keppel South Central, the Keppel Sakra Cogen power plant and the Bifrost Cable System, with subsea cables that connect Singapore directly to North America. Potential M1 sale In the near term, there are other catalysts that investors can look out for. One is the potential sale of telco M1's consumer business, which Keppel chief executive Loh Chin Hua indicated the company remains open to, during an earnings briefing on Jul 31. Such a sale is likely to cheer the market. CGS International analysts estimate M1's consumer business to be worth between S$700 million and S$900 million, and see its divestment as a potential re-rating catalyst. Chatter about the sale of M1 has been long ongoing, with fresh talk about a potential merger with StarHub surfacing last year. The telco market is 'overcrowded', with four operators and about seven mobile virtual network operators, noted Manjot Singh Mann, the CEO of Keppel's connectivity segment, at the briefing. Many SIM-only plans are replacing contract plans, diluting average revenue per user across the industry. Consolidation may then be only a matter of time, and a fruition of long-held expectations would certainly be a positive. At the same time, Keppel stands to benefit from retaining M1's enterprise business, which complements its data centres. '(We) do see a lot of organisations digitalising their businesses and looking for either hybrid cloud or multi-cloud solutions. So, that is where we do see synergy between our enterprise business and our data centre business,' said Mann. Asean grid opportunities Another catalyst that investors can look out for is Keppel's efforts to import renewable energy and contribute to the building of an Asean power grid, even amid the US-led backlash on green projects and the threat of tariffs. A significant tailwind is Singapore's plans to import 6 gigawatts (GW) of low-carbon electricity by 2035. Keppel already has two projects contributing to this effort. In 2023, its unit Keppel Energy secured conditional approval from Singapore's energy authority to import 1 GW of clean energy from Cambodia. Last year, Keppel Energy also secured a conditional licence to import 300 megawatts (MW) of solar power from Indonesia. A conditional approval and conditional licence are the first and second steps, respectively, towards obtaining a full licence for energy import projects. With the two projects, Keppel has unlocked 'very large-scale' opportunities, said Cindy Lim, CEO of the infrastructure business, on Jul 31. For instance, the 300 MW Indonesia project translates to an upstream generation capacity of about 2 to 2.5 GW of photovoltaic systems, as well as 5 gigawatt-hours of battery energy storage. 'The opportunities for an Asean power grid are very promising... We see Keppel as a front runner in this regard, and we will be playing our part to work with regulatory authorities across Asean, as well as with agencies in Singapore, to make this happen,' noted Lim. Keppel is also building Singapore's first hydrogen-compatible power plant: the 600 MW Keppel Sakra Cogen Plant on Jurong Island, which is set to commence operations in the first half of 2026. Lim disclosed that Keppel may 'give a positive surprise' by bringing the Sakra plant onstream earlier. The plant will expand the company's generation capacity by nearly 50 per cent, from 1.3 GW to 1.9 GW. These projects could lift Keppel's infrastructure division, which saw a 12 per cent fall in revenue to S$2 billion for the first half of 2025, due to lower net generation in the integrated power business. The segment's net profit was down 4.9 per cent, at S$346.6 million. CGS International sees infrastructure as the 'clear driver' for 'New Keppel'. To be sure, Keppel's green power efforts come in the face of significant headwinds. Global sentiment on renewable energy has cooled, with the US doubling down on oil and gas. Tariffs remain another big wild card in this business. That said, South-east Asia's march towards renewable energy has been undeniable, with the improving economics of solar energy and the clear need for energy security. Keppel's ability to ride this trend could prove to be a long-term growth catalyst. Valuation boost? At the earnings briefing on Jul 31, Loh suggested that Keppel could be compared to global asset managers KKR, Brookfield, BlackRock and Blackstone. He also expressed hope for a re-rating of the stock. 'As we accelerate the growth of 'New Keppel', we expect that the market will re-rate our stock price and accord us a growth multiple,' he said. It will be worth observing if the current market bullishness translates to richer valuations over time. Keppel now trades at 17.2 times earnings – still some way behind BlackRock, which trades at 27 times earnings, Blackstone at 44.9 times and KKR at 65.1 times. Whether investors will value Keppel at the levels of these asset management giants could depend on the pace and execution of the non-core asset divestments.
Korea Herald
22-07-2025
- Business
- Korea Herald
Telin Launch CLS Manado-Minahasa: Bold Step to Strengthen Eastern Indonesia Digital Ecosystem Toward a More Diverse and Opulence Connectivity
MANADO, Indonesia, July 22, 2025 /PRNewswire/ -- PT Telekomunikasi Indonesia International (Telin), a subsidiary of PT Telkom Indonesia (Persero) Tbk (Telkom), proudly announces the official launch of its new Cable Landing Station (CLS) in Kalasey, Minahasa. This milestone represents a major leap forward in Telin's mission to enhance Indonesia's international connectivity and digital infrastructure focusing on strengthening eastern regional zone. The inauguration ceremony was attended by Telkom Group's executive leadership, including CEO of CFU WIB Telkom Group - Honesti Basyir; President Commissioner of Telin - Muhammad Rofik; Telin Commissioner - Bambang A. Margono; Telin's Board of Directors; Budi Satria Dharma Purba, Kharisma, Abdul Rahman Ansyory, and Doni Andriansyah; Business Director of GSD - Amini Kusumawati; Acting CEO of Telkom Infrastruktur - Slamet Riyanto; Operation Director of Telkom Akses - Ambari; and EVP of Telkom Regional V - Amin Soebagyo. CLS Manado-Minahasa is a critical component of Bifrost Cable System, an international subsea cable project developed in partnership with Keppel and Meta. This cutting-edge system connects Southeast Asia directly to North America, bypassing traditional routes by traversing strategic maritime corridors such as the Java Sea and the Celebes Sea. This new path signi ficantly enhances Indonesia's position within the global digital traffic network. Since the Bifrost cable system kick off announcement in 2021, Telin has been achieving remarkable milestones — from selecting site location, holding the ground breaking ceremony in October 2024, successfully lands the cable in early 2025 and come to completing the overall CLS construction. Following the cable landing at Jakarta CLS last year, CLS Manado-Minahasa are now ready to be fully activated and integrated into Telkom's network. Today, the station stands ready to power Indonesia's digital future and support a growing number of international cable systems. Honesti Basyir, CEO CFU WIB Telkom Group, highlighted the strategic vision behind this development, stating, "The Manado-Minahasa Cable Landing Station marks a bold step in positioning Indonesia as a vital digital gateway for the Asia-Pacific. By connecting directly across the Pacific via Bifrost and preparing for future cables, we are building the foundation for a more connected, innovative, and prosperous digital future for our nation and region." Budi Satria Dharma Purba, CEO of Telin, further emphasized, "The Manado Cable Landing Station is more than just infrastructure; it is a gateway for Indonesia to lead in the digital era. Supporting Bifrost and future cables, we are enabling greater connectivity, innovation, and economic opportunity across the Asia- Pacific region." Designed with advanced, scalable infrastructure, the CLS Manado-Minahasa can accommodate multiple submarine cable systems. Equipped with Beach Man Hole (BMH) integration and robust front-haul connections, it serves as an ideal landing point for future subsea cables and digital platforms. The launch of the Manado-Minahasa Cable Landing Station represents far more than a physical connection —it is a beacon of Indonesia's digital transformation. By supporting Bifrost and other upcoming international cable projects, this strategic asset will enhance regional connectivity, foster economic growth, and bolster Indonesia's role as a vital hub in the global digital network. About Telin: Established in 2007, Telin provides premium international carrier voice, data services, and tailored business solutions for wholesale, enterprise, digital, and retail customers. Telin operates in multiple countries and cities, including Indonesia, Singapore, Hong Kong SAR, Australia, Malaysia, Taiwan region, the United States, Timor Leste, the United Arab Emirates, and Myanmar, with representatives in the United Kingdom, the Philippines, India, Vietnam and Canada. Telin's infrastructure spans 250,140 kilometers of cable system length, incorporating 27 Global Submarine Cable Systems, and operates 58 Points of Presence in 26 Countries, 10 global offices, 5 global countries Sales Representative, and over 19 Tier II to Tier IV Data Centers in key locations, including Singapore, Hong Kong SAR, Timor Leste, and Indonesia.
