SembCorp Industries Ltd *Official* (SGX: U96)

[Shion]

Sembcorp unit bags new solar power project in India

Sembcorp unit bags new solar power project in India

https://www.businesstimes.com.sg/co...rp-unit-bags-new-solar-power-project-in-india

SEMBCORP Industries' India energy arm Sembcorp Energy India Limited (SEIL) has clinched a 400 megawatt (MW) solar power project through its renewables subsidiary, Sembcorp Green Infra.

The energy and utilities group announced on Friday that SEIL won the bid in a "closely-contested" auction conducted by the Solar Energy Corporation of India (SECI).

Under the letter of award from SECI, SEIL will develop the project in the northern Indian region of Rajasthan. It is to be connected to the state's transmission utility, Rajasthan Rajya Vidyut Prasaran Nigam Limited.

The project's entire output will be sold to SECI under a 25-year long-term power purchase agreement. It is expected to be ready for commercial operation by mid-2022 and will be funded through a mixture of internal funds and debt, said Sembcorp Industries in its pre-market filing.

Sembcorp Industries' latest project win brings the group's renewables portfolio to over 3,000 MW in operation and under development across Singapore, China and India.

According to group president and chief executive Wong Kim Yin, it represents another step towards transforming Sembcorp Industries' portfolio.

"Sembcorp has an established track record in delivering world-class power projects. This is backed by our strong capabilities in development, execution and operations. India is a key market and we will continue to provide sustainable solutions to contribute to the nation's clean energy mission," he said.

SEIL had previously completed the commissioning of 800 MW of wind projects awarded from three earlier SECI bids. This makes SEIL the first independent power producer to do so, said the group.

Commenting on Sembcorp Industries' latest project win, Lim & Tan Securities said while benefits will accrue in the longer term, it likes the group's renewed focus on the renewable sector, which is viewed to be in line with the new US administration's goals under a Joe Biden presidency.

The brokerage however remained "neutral" on the stock given its current valuation metrics.

"At 30 times price-to-earnings, 1.7 per cent dividend yield and only 4 per cent upside to consensus target price of S$1.84, we are 'neutral' on Sembcorp Industries," stated Lim & Tan in its research note on Friday.

As at 11.02am, shares in Sembcorp Industries were up by 0.6 per cent or S$0.01 at S$1.78.

 

[Shion]

Sembcorp CFO returns to New Zealand; no replacement named

https://www.businesstimes.com.sg/co...o-returns-to-new-zealand-no-replacement-named

SEMBCORP Industries chief financial officer Graham Cockroft is quitting after two years to return to New Zealand, the mainboard-listed conglomerate said on Friday.

With the 57-year-old stepping down on Feb 28, Sembcorp added that it is "working on bringing in Mr Cockroft's successor", to be announced in due course.

Said Mr Cockroft, without giving further details: "I believe that it is the right time for me to enter the next chapter of my career, and I am looking forward to relocating back to New Zealand to be with family in these extraordinary times."

He was appointed in September 2018. Sembcorp president and chief executive Wong Kim Yin said he had contributed to the group's strategic development, especially the demerger of the marine business.

There are no unresolved differences in opinion on material matters, or other issues that need to be flagged to shareholders, the board added in a bourse filing.

Sembcorp shares shed S$0.01, or 0.55 per cent, to S$1.82, before the announcement.

 

[Shion]

Sembcorp monitoring situation in Myanmar, provides updates on investments

Sembcorp monitoring situation in Myanmar, provides updates on investments

https://www.straitstimes.com/busine...nvestments-in-myanmar-following-military-coup

SINGAPORE (THE BUSINESS TIMES) - Sembcorp Industries has said it is actively monitoring the developing situation in Myanmar in the wake of the military coup.

On Tuesday (Feb 16), the company provided updates on its two investments in Myanmar. The first is a 225-megawatt gas-fired power plant in Mandalay, operated through Sembcorp subsidiary Sembcorp Myingyan Power Company. The plant commenced full commercial operation in October 2018.

Amid the situation in Myanmar, Sembcorp said the power plant continues to be in operation and added that its employees are safe.

As at the end of last December, the net book value of the plant stood at US$57 million (S$75.4 million); some US$230 million of the project's loan currently remains outstanding. Sembcorp said the outstanding loan is backed by a corporate guarantee issued by its wholly owned subsidiary, Sembcorp Utilities.

The group's other investment in Myanmar, an industrial park development announced on Aug 17, 2020, has not yet commenced.

Myanmar's military had on Feb 1 declared a one-year state of emergency after arresting civilian leader Aung San Suu Kyi and other senior officials. The military later announced that 24 ministers and deputies had been removed, and 11 replacements across sectors such as finance and health had been named.

Following the coup, there were reports of interruptions to telecommunications and Internet services across the country. There was also a military order to block Twitter and Instagram after the authorities said some people were using these platforms to spread false news.

Despite the chaos, Myanmar's military chief Min Aung Hlaing had reportedly said that the country remains open to foreign and local investments, and that he plans to support business projects from the previous government that are already under way.

Sembcorp said it will continue to monitor the situation and provide updates if there are material developments.

Shares of Sembcorp closed flat at $1.69 on Tuesday before the announcement.

 

[Shion]

Sembcorp sinks into the red with $866m second-half loss

Sembcorp sinks into the red with $866m second-half loss

https://www.straitstimes.com/busine...sinks-into-the-red-with-866m-second-half-loss

SINGAPORE (THE BUSINESS TIMES) - Sembcorp Industries sank into the red with an $866 million net loss for the second half ended Dec 31, 2020, from a net profit of $56 million a year ago.

This came as the group's turnover dropped 17 per cent to $2.83 billion for the six months ended December 2020, from $3.43 billion a year ago on a continuing operations basis.

The results translate to earnings per share (EPS) of 11.09 cents from continuing operations, from an EPS of 5.04 cents a year ago.

Sembcorp distributed its ordinary shares in Sembcorp Marine to its shareholders on Sept 11, 2020. Consequent to this, the performance of the marine segment from Jan 1, 2020, to Sept 11, 2020, is reported as a discontinued operation with comparative information represented accordingly.

On a non-continuing operations basis, Sembcorp recorded a loss per share (LPS) of 48.52 cents, against EPS of 2.13 cents in FY2019.

For the full year ended Dec 31, 2020, the group recorded a net loss of $997 million, from a net profit of $247 million.

On a continuing operations basis, the group recorded an EPS of 7.84 cents, from an EPS of 15.06 cents a year ago. Otherwise, it recorded an LPS of 56.81 cents, from an EPS of 11.81 cents in FY2019.

Turnover was 19 per cent lower at $5.45 billion on continuing operations, from $6.74 billion the year before.

This was mainly due to a non-cash, non-recurring fair-value loss of $970 million recorded after the completion of the distribution of Sembcorp Marine shares in 2020, as well as a net loss of $184 million from the marine business prior to the distribution. Sembcorp also recorded exceptional items of negative $144 million.

A final cash dividend of four cents per share has been declared for the full year, compared with a total dividend of five cents declared for FY2019.

The final dividend will be paid on May 6 after the record date on April 29, if approved by shareholders at the annual general meeting to be held on April 22.

Looking ahead, Sembcorp said uncertainties continue to persist with regard to the strength of recovery from the Covid-19 pandemic.

"Underlying performance of the group will also be impacted by changes in customer profile in the United Kingdom and Singapore, as well as the loss of income from divested assets in Panama and Chile," it said.

The group will continue to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable developmen, Sembcorp added.

Shares of the mainboard-listed company were trading at $1.66 as at 9.12am on Tuesday, up $0.04 or 2.5 per cent.

 

[Shion]

Sembcorp snags solar energy contract from HDB, EDB; to add over 400 jobs for such projects

Sembcorp snags solar energy contract from HDB, EDB; to add over 400 jobs for such projects

https://www.straitstimes.com/busine...gy-contract-from-hdb-edb-to-add-over-400-jobs

SINGAPORE (THE BUSINESS TIMES) - Sembcorp Industries (Sembcorp) has been awarded a 60 megawatt-peak (MWp) solar project by the Housing Board and the Singapore Economic Development Board (EDB), through its wholly owned subsidiary, Sembcorp Solar Singapore.

Grid-tied rooftop solar systems with a total capacity of 60 MWp will be built across 1,154 HDB blocks and 46 government sites in Singapore, generating enough energy to power about 16,000 four-room HDB flats for a year. Sembcorp expects this will offset about 32 kilotonnes of carbon emissions annually - equivalent to taking about 7,000 cars off the roads.

The project comes as part of the SolarNova programme to accelerate deployment of solar photovoltaic systems in Singapore, with a capacity target of 540 MWp on HDB blocks by 2030, Sembcorp said in a statement on Friday (March 12).

The project win comes after the group announced plans to pivot towards renewable energy after its split with Sembcorp Marine last September.

Having clinched a total of 82 MWp in new solar energy projects this year, Sembcorp estimates an addition of more than 400 jobs to support construction of announced projects.

Mr Koh Chiap Khiong, chief executive of Singapore, South-east Asia and China, Sembcorp Industries, said: "We are grateful for this opportunity to work with HDB and EDB. This award is testament to our focused strategy to grow our renewable energy portfolio. With our international track record, we are well-positioned and committed to support Singapore's Green Plan, and to serve the nation with clean energy."

Sembcorp said the solar projects listed are not expected to have a material impact on the earnings per share and net asset per share of Sembcorp for the financial year ending Dec 31.

Shares of Sembcorp Industries closed at $1.81, down 0.6 per cent, or $0.01, on Thursday before the announcement.

 

[Shion]

Sembcorp Industries to focus on renewables, sustainable urban solutions businesses​

https://www.businesstimes.com.sg/co...wables-sustainable-urban-solutions-businesses

SEMBCORP Industries is transforming its portfolio for sustainability, focusing on growing its renewables and sustainable urban solutions businesses, the firm said in its annual report on Wednesday.

Last year, its renewables and environment business generated S$806 million in revenue.

Sembcorp Industries' chairman Ang Kong Hua and group president and chief executive officer Wong Kim Yin said in their statement in the annual report: "With Singapore as our home base, we are well-placed to serve markets in Asia, where population growth is driving rising demand for sustainable solutions that enable rapid industrialisation, urbanisation and electrification."

The company aims to be a regional front-runner in renewable energy, including wind, solar and energy storage. Its energy business turned a net profit of S$160 million last year, down from S$195 million in 2019.

Its urban business segment has 13 projects across Vietnam, China and Indonesia, in which the firm partners governments and offers services in in areas such as master planning, land and property development, and asset management.

Amid the pandemic, the urban business recorded a net profit of S$92 million in 2020, down from S$117 million in 2019.

"By leveraging synergies across our businesses, we can provide solutions focused on meeting the twin goals of clean energy and sustainable urbanisation in Asia," Mr Ang and Mr Wong said.

 

[yumsang]

what's the occasion?

 

[Squaredot]

what's the occasion?

2.10

arctician bro, happy boh?

 

[yumsang]

2.10

arctician bro, happy boh?

yeah, gona up my tp to 2.5

 

[kkcheng77]

Just saw this, maybe investors think this company exit not really big deal one.
https://www.sembcorp.com/en/media/598028/notice-of-termination-of-utilities-services-agreement.pdf

 

[hwarzoner]

bought since 1.35 huat ahhhhhhhhhhhhhhhhhh

 

[Squaredot]

bought since 1.35 huat ahhhhhhhhhhhhhhhhhh

gxgx

 

[Shion]

Sembcorp hits 10-month high amid positive HSBC, Credit Suisse ratings

https://www.straitstimes.com/busine...mer-to-terminate-utilities-services-agreement
SINGAPORE (THE BUSINESS TIMES) - Shares of Sembcorp Industries hit a 10-month high on Monday (April 19) after HSBC upgraded its call to “buy” from “hold”, while Credit Suisse initiated coverage on the stock with “outperform”.

The counter was trading at an intraday high of $2.08 on Monday, up 7.2 per cent or $0.14 as at the midday trading break, with 18.1 million shares changing hands. The last time the counter closed near this level was on June 9, 2020, at $2.09.

On top of upgrading Sembcorp to “buy”, HSBC raised its target price to $2.61 from $1.68, implying a 2021 price-to-book multiple of 1.3 times that is slightly higher than Sembcorp’s peers.

HSBC said it now values Sembcorp’s energy division at an estimated enterprise value (EV) eight times that of the group’s earnings before interest, taxes, depreciation and amortisation (Ebitda). This is a slight premium to the research team’s estimated 2021 market capitalisation-weighted EV/Ebitda multiple of Sembcorp’s peers.

“The premium is to acknowledge that SCI (Sembcorp) is the only Singapore-based energy company listed on STI (Straits Times Index),” HSBC said.

The HSBC research team has updated its free cash flow (FCF) generation forecasts for Sembcorp, leading to lower net debt for its 2021 forecast. It said a mix of “good underlying FCF generation” and additional debt are likely sources of support for future growth.

All eyes are on Sembcorp’s investor day scheduled in May, where management is likely to announce its renewables ambitions, HSBC noted.

Separately, Credit Suisse initiated coverage on Sembcorp with “outperform” and a target price of $2.40. This is based on a sum-of-the-parts valuation implying a financial year 2021 price-to-book ratio of 1.2 times.

Credit Suisse believes most of Sembcorp’s renewables capacity additions would be in India, supported by the country’s target to double its renewables capacity to 175 gigawatts by 2022.

The Credit Suisse research team expects Sembcorp’s return on equity to rebound 9 per cent to 10 per cent in financial year 2021-2022, from 3 per cent in financial year 2020. This will be mainly due to demand normalisation and the absence of significant impairments.

Separately on Monday, Sembcorp said it has received notice from major customer Eastman Chemical Singapore to terminate its utilities services agreement. This came after Eastman exited its manufacturing site operations on Jurong Island.

Eastman’s contribution was 5 per cent of Sembcorp’s financial year 2020 net profit before exceptional items, from continuing operations. The group’s profit from continuing operations for the period stood at $157 million.

 

[chopra]

v shiok. this is my only stock in sgx. rest of money in iwda n eimi n small punts in us stocks


Read HWZ Forum Rules!

 

[yumsang]

wah initial tp 2.20 reached ... very 纠结　

 

[Shion]

PhillipCapital downgrades Sembcorp Industries as positives already 'priced in'​

https://www.theedgesingapore.com/ca...-sembcorp-industries-positives-already-priced
PhillipCapital analyst Terence Chua has downgraded his recommendation on Sembcorp Industries to “neutral” from “accumulate” as he sees that most of the counter’s positives have been “priced in”.

The group’s ambition of transforming its portfolio is not new either, he writes in a May 31 report.

Chua’s recommendation comes after the group has announced its strategic plan to transform its portfolio into a green one on May 27, including aiming for 70% profit contribution from sustainable projects by 2025.

For its plan, Sembcorp has projected a capital expenditure (capex) of $5.5 billion for the next five years, with 80% to be spent on renewables and 20% on urban development.

It is also aiming to halve its greenhouse gas emissions by 2030 and deliver net zero carbon emissions by 2050.

On this, Chua believes the group will “accomplish this by aggressively growing its renewables capacity, improve its fuel mix, divest its thermal coal business, or possibly a combination of the three”.

The group’s target return on equity (ROE) of 10% for 2025 is “achievable” says Chua, though that will depend on its execution of plans in the next four years.

“We expect the group to continue with its transition to sustainable solutions and sustainable development. Despite its ambitious growth plans, it will not require any equity fund-raising, relying entirely on internal sources,” he writes.

“Owing to persistent uncertainties surrounding recovery from the Covid-19 pandemic, intense competition from other global utility companies and expiry of long-term contracts impacting PATMI by around $100 million in the next five years, we keep our earnings estimates unchanged,” he adds.

Despite the recommendation downgrade, Chua has increased Sembcorp’s target price estimate to $2.07 from $1.77 as he pegs it to 1.0 times FY2021 price-to-book (P/B), up from 0.85 times previously.

“We believe the detailed layout of its five-year plan will drive a re-rating of the stock. This reflects its improving outlook and stronger operating metrics expected for FY2021 and FY2022,” he says.

Chua’s current target price estimate represents a 3.2% downside to Sembcorp’s last-closed share price of $2.20.

As at 11.05am, shares in Sembcorp are trading 4 cents higher or 1.8% up at $2.24 or 0.6 times P/B, according to PhillipCapital’s estimates.

 

[yumsang]

0.6 times P/B means still cheap？

 

[Euqorab]

0.6 times P/B means still cheap？

How do they value the book value, is there overvaluation?

 

[SembCorp]

Good to keep SCM shares?

Should have sold at 20 cents!!!!!

 

[[M]aiev]

0.6 times P/B means still cheap？

still have boomers vested on those kind of old economy stocks and based on P/B sia