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Keppel Corporation (Keppel), one of the largest conglomerates in Singapore, is expected to release its 3Q19 results tomorrow on 17th October 2019. Shares of Keppel (currently a shade below S$6) is hovering near its 52-weeks low of S$5.67. Should investors be looking to take a dip?

Source: Google Finance

Compared to Sembcorp Marine, Keppel’s price performance has outperformed on a YTD basis, increasing by c.3% since the start of the year vs. Sembcorp Marine’s c.22% decline. However, the question begets if the company should still be viewed as an Offshore & Marine (O&M) company or as a Property Developer?

Oil or Property company? The confusion of a conglomerate

As a property development company, Keppel significantly underperforms peers such as CapitaLand, up c.17% YTD and City Development, up c.24% YTD.

Despite approx. 80% of the company’s profits now

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