Sembcorp Marine - Merger Hope
- Sembcorp Marine (SGX:S51) shared in the 3Q21 analysts call that it hopes to conclude the due diligence to merge with Keppel O&M “sooner than later”. We expect finalization by 1Q22.
- Orders under tender exceed S$10bn and Sembcorp Marine hopes to secure better order wins in 2022. We estimate year-to-date win of S$650m and order book of S$1.42bn.
- But Sembcorp Marine guided for continued significant losses in 2H21 (potentially as much as 1H21: S$647m) due to COVID-19 issues and supply chain constraints.
- Our HOLD call for Sembcorp Marine is premised on Temasek’s support and the potential combined entity with Keppel O&M. Our target price of S$0.09 for Sembcorp Marine is based on 0.8x CY22F P/BV.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-11 2021-11-11
Previous report by CGS-CIMB:
2021-09-22 Sembcorp Marine - 42 Days To Decide
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