- Sembcorp's FY24 revenue was below expectations at 93% but net profit exceeded at 111% of our FY24e forecast. Revenue was weaker due to lower than expected wholesale electricity prices, whilst margins benefited from land sales.
- - Read this at SGinvestors.io -
- FY24 Sembcorp's dividends jump 77% to 23 cents.
- We raised our FY25e net earnings forecast for Sembcorp by 14% to S$1,077mil, from higher associate income. Our recommendation is downgraded from BUY to ACCUMULATE due to the recent strength in Sembcorp's share price.
The Positive
Jump in renewables installation.
- - Read this at SGinvestors.io -
- A net S$18mil subsidy receivables provision in China negatively impacted PATMI from renewables. Another drag to renewable earnings was weaker wind speeds in India, particularly in Gujarat.
Surge in land sales.
- Read more at SGinvestors.io.
