Sembcorp Industries

[winston]

Not vested. From DBS:-

At the group level, 4Q10 net profit of S$288.7m for SembCorp Industries was ahead, mostly driven by Marine, which accounted for 64% of profits.

Utilities performed despite challenging UK.

FY11/12F forecast raised by 9%/11% on earnings upgrade for Marine and improved Utilities estimates.

Maintain Buy, TP raised to S$6.10 (Prev S$ 5.70).

[winston]

RESEARCH ALERT-Daiwa raises Sembcorp Industries target to S$5.58

SINGAPORE, Feb 28 (Reuters) - Daiwa has raised its target price for Singapore energy, water, and marine group Sembcorp Industries to S$5.58 from S$5.42 and kept its outperform rating on the firm.

STATEMENT: Sembcorp Industries said on Friday its fourth quarter net profit fell 12 percent to S$228.7 million ($179 million) from a year earlier mainly due to weaker performance from marine and utilities.

Daiwa said Sembcorp Industries' results were better than expected due to strong sales at a residential property development project in Vietnam.

The brokerage has raised its 2011 adjusted net profit forecast for Sembcorp Industries by 15.7 percent to S$692 million.

"Potential positive share price catalysts are new rig-building contract announcements by SembMarine and our view that the company could benefit financially by selling its utilities projects to a trust," said Daiwa in a report.

At 0201 GMT, shares of Sembcorp Industries were 1.8 percent lower at S$4.81 and have fallen 6.4 percent since the start of the year.


Source: Reuters

[winston]

Not vested

Energy, water and marine group Sembcorp Industries surged as much as 4.5 percent after several brokerages upgraded their target price for the firm, saying its shares were undervalued and represented an attractive buying opportunity.

"We believe this presents a buying opportunity as we think concerns over Sembcorp Industries' Middle East exposure - which triggered the derating - is overdone," said UBS in a report.

"We foresee healthy growth in the utilities business in coming years," UBS said. It raised its target price to S$6.73 from S$6.24 and kept its buy rating on the stock.

IIFL also raised its target price for Sembcorp Industries by 3.1 percent to S$7.01, and said the market has under-priced its non-marine businesses.



Source: Reuters

[winston]

Not vested

Singapore conglomerate Sembcorp Industries said on Wednesday first quarter net profit rose 0.7 percent from the year-ago period as marginal gains in its utilities and marine businesses were offset by lower profits from industrial parks.


Source: Reuters

[tinpeng]

DJ Sembcorp Industries Forms New China Unit For Water Projects

SINGAPORE (Dow Jones)--Sembcorp Industries Ltd. (U96.SG) said Friday its unit Sembcorp Utilities has established a wholly owned holding company in Shanghai and will transfer its water investments in China to the new company.

Sembcorp (China) Holding Co. has been formed with an initial capital of US$50 million and will serve as the regional headquarters of the utility company.

The statement didn't give details of the assets that will be transferred to the new unit. Sembcorp Industries is 49.4% owned by Singapore's state investment firm Temasek Holdings.

Sembcorp Utilities runs plants that have the capacity to generate 5,600 megawatts of power and has over six million cubic metres of water per day in operation and under development, according to information on the company's website.

It provides water and waste water treatment facilities to five industrial parks in China including Shanghai Chemical Industrial Park and Nanjing Chemical Industrial Park.


Source: Dow Jones Newswire

[winston]

not vested

Sembcorp Industries Ltd said on Tuesday it will be part of a consortium that will develop 715 hectares of land near the the Chinese city of Nanjing.

Source: Reuters

[winston]

not vested

Sembcorp Industries said on Friday its third-quarter net profit fell 8.9 percent to S$222.4 million as last year's profit was boosted, partly by an exceptional gain from the settlement of disputed foreign exchange transactions.

Its gross profit also dropped 13 percent in July-September compared to a year ago, due to lower contribution from its marine business.

Source: Reuters

[winston]

not vested

3Q earnings for Sembcorp Industries were below forecasts but Utilities surprises on the upside.

Utilities will continue to perform better in 4Q11 and FY12. We have raised Utilities earnings by 29%.

Therefore, despite a 5% lower Marine earnings, FY11/12F earnings are revised up by 11%/10%.

Maintain Buy with higher TP of S$4.90 (Prev S$ 4.50).


Source: DBS

[winston]

Sembcorp Ind Q1 profit up 10.5% By Carine Lee

Sembcorp Industries on Friday said its net profit for the first quarter ended March 31, 2012 increased 10.5 per cent year on year to $176.67 million.

Turnover rose 21.4 per cent year on year to $2.43 billion, with its utilities segment reporting a 29 per cent growth in revenue from a year ago to $1.44 billion.

The group said the increase in utilities turnover is due to additional gas sales and higher high sulphur fuel oil at its Singapore operations.

Earnings per share for the quarter was 9.90 cents, up from 8.95 cents a year ago.


Source: Business Times

[winston]

not vested

SCI’s Utilities division is growing faster, yet remains cheaper than its peers.

SCI’s Utilities trades at 6-7x FY12/13 PE, below its 8x historical mean. It deserves a re-rating closer to its regional peer average of 12x considering that 2010-2013 earnings CAGR (2010-2013) of 16% is ahead of the 13% expected by its peers.

As for concerns over falling oil prices (due to its substantial stake in SMM), we would argue that SCI is no more correlated to oil prices than the STI (0.586 v 0.550).

SCI is a Utilities stock which offers exposure to potential upsides in the Oil & Gas market yet is more resilient than an O&G pure play.

Reiterate Buy.

Source: DBS