by winston » Wed Jan 11, 2017 9:21 am
Sembcorp Industries: Well-positioned to grow
As a leading developer, owner and operator of energy and water assets with strong operational, management and technical capabilities, Sembcorp Industries has grown its operations to 14 countries and looks set to cement its presence in Asia.
Though its marine segment is facing headwinds, the longer term outlook for the utilities segment remains positive, and the group is well-positioned to seize emerging market opportunities in its utilities segment.
Nearer to home, we will monitor the liberalisation of the retail electricity market, though it is likely that greater impact would be felt by the top 3 gencos (which SCI is not part of).
We have updated our SOTP valuation to incorporate our higher FV for the marine division, as well as tweaked our estimates for the utilities segment.
Source: OCBC
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