Plans In Place To Substantially Exit The O&M Industry
KEP’s non-binding MOUs to combine its O&M business with SMM will enable it to substantially exit the O&M industry. At present, details are still being worked out and valuation numbers are unavailable. We view the developments as largely positive as it moves the company closer towards its Vision 2030 with a goal of generating a double-digit ROE and more recurring income. Maintain BUY. Target price: S$6.37.