- Sembcorp (SGX:U96) reported 2H24 PATMI of S$471m, -13% h-o-h/+14% y-o-y. FY24 PATMI of S$1.011b grew 7% y-o-y and PATMI from continuing operations of S$1.02b was unchanged y-o-y.
- - Read this at SGinvestors.io -
- Sembcorp is now guiding for a 5% earnings CAGR for its gas business vs earlier guidance of a decline. We raise our FY25-26 earnings by 6-11% and maintain BUY. Our Sembcorp's target price rises from S$6.20 to S$7.10.
Earnings resilience from diverse revenue stream.
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- Net profit from renewables business of S$183m was down 9% y-o-y. While the segment top line grew 6% from ~40% increase in installed capacity to 13.1GW, higher curtailment in China and lower wind speeds in India in the 2H24 affected the associates’ contribution and the bottom line.
- Integrated urban solutions business grew top line by 3% and net profit by 40% due to higher land sales in Vietnam and Indonesia at the associates.
- Debt metrics softened due to higher debt to fund M&As and grow operational power capacity.
Gas to grow: Long-term renewables target rises.
- Read more at SGinvestors.io.
