Sembcorp Industries - Maybank Research 2023-06-09: Next Chapter Of Growth; More Re-Rating Catalysts Ahead

• We are positive on Sembcorp (SGX:U96)’s recent renewables acquisitions and its long-term power purchase agreement (PPA) with SingTel. We thus raise our FY23-25 earnings forecasts for Sembcorp by 9-11% by taking into account higher margins for recently secured long-term PPAs.
• - Read this at SGinvestors.io -
• Sembcorp remains undervalued as our higher SOTP-based target price of S$6.00 (previously S$4.35) based on 12x (previously 10x) FY24E P/E represents a 10% discount to regional utility peers, which are trading at an average of 13x FY24E P/E.

Sembcorp’s first renewable project in the Middle East

• - Read this at SGinvestors.io -
• We estimate Sembcorp’s investment to be ~S$400m, funded by debt and equity. We also estimate a project ROE of 8-10%, which yields profit of S$10-12m pa, or 1.4-1.7% of Sembcorp’s FY25E earnings.

Signs PPA with SingTel to manage merchant risk

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-12-16 Sembcorp - Accretive Purchase, But Higher Gearing & Emissions.

Previous report by Maybank:
2025-08-11 Sembcorp Industries - Fully Valued, Downside Risk To Earnings.

Price targets by other brokers at Sembcorp Target Prices.

Listing of research reports at Sembcorp Analyst Reports.

Relevant links:
Sembcorp Share Price History,
Sembcorp Announcements,
Sembcorp Dividend Payout Dates & Corporate Actions,
Sembcorp News