SG Investor Hub Blog

Journal-ling the reaction when Dow Fell 800 Points

This is a follow up to the last post I did when the volatility of the markets picked up. Not to cause panic but I want to see how different ETF for different asset classes do. 800 points do look like a lot and for a market like this you realize there are not a […]

KIT share price to suffer same fate as Hyflux?

Will Keppel Infrastructure Trust (KIT) do a Hyflux? I have never been a big fan of business trusts. Just take a look at Asian Pay TV Trust (APTT) and Hutchinson Port Holdings (HPH) Trust. The unit price of both business trusts plunged to incredibly abysmal levels in recent years due to declining business fundamentals. Could Keppel Infrastructure be different?

Bizarrely, all three business trusts are linked to Temasek Holdings. Even more strange is that there are eerie similarities between Keppel Infrastructure Trust and Hyflux.

KIT share price

Like Hyflux, Keppel Infrastructure Trust owns just one power-plant (Keppel Merlimau Cogen Plant), which has been making huge losses and still counting. Similar to the ill-fated Hyflux, Keppel Infrastructure Trust issued $300 million 4.75% Perpetual Bonds. Oh yes, KIT also owns a 70% stake in SingSpring Desalination Plant, which was built by Hyflux. Gulp, all these sounds quite ominous right?

Nonetheless, with sovereign wealth fund Temasek Holdings as backer, chances of KIT share suffering the same fate as Hyflux is low. Temasek Holdings would not allow it to happen. But will KIT share price collapse like APTT and HPH Trust? Read on to see my review of KIT share price.

KIT share price to sink or

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