Sembcorp Industries - CGS-CIMB Research 2023-08-07: Strive Towards Stability

• We raise target price for Sembcorp (SGX:U96) to S$6.85 as a result of our EPS upgrades, reflecting a higher base for conventional energy (CE) profits after its beat in 1H23.
• Reiterate ADD due to renewable energy (RE) growth potential. Our target price is still based on 14x CY23F P/E, in line with regional peers.

Long-term contracts to kick in, leading to stable conventional energy net profit

• - Read this at SGinvestors.io -
• We expect this to taper by ~20% in 2H23F as long-term contracts with Micron and Singtel kick in, resulting in more than two-thirds of Sembcorp’s 1.2GW capacity contracted on a long-term basis.
• - Read this at SGinvestors.io -

Gross renewable energy capacity 11.9GW; organic and inorganic profit growth

• Read more at SGinvestors.io.

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/.

Read also CGS-CIMB's most recent report:
2023-11-07 Sembcorp Industries - Setting 2028 Targets.

Price targets by 5 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