Sembcorp - Maybank Research 2026-03-02: Stable Underlying Earnings

• Maintain HOLD on Sembcorp (SGX:U96) despite reasonable valuation (10.4x FY27 P/E).
• Factoring in one-off integration costs for Alinta Energy, we lower FY26 and FY27 PATMI by 33.5% and 7.4%, respectively. FY26 core PATMI remains stable at S$1b.

Weaker top line offset by acquisitions

• - Read this at SGinvestors.io -
• Sembcorp raised dividend to 25 cents from 23 cents a year ago. While the group is positioning itself well to create long-term shareholder value, near-term earnings are likely to consolidate from lower spreads and integration costs related to Alinta Energy.

Stable performance from M&A and urban solutions

• - Read this at SGinvestors.io -
• Revenue from renewables rose 15% from newly commissioned projects and a full-year contribution from the Vietnam acquisition.
• Revenue from integrated urban solutions fell 44% due to the divestment of SembEnviro.

Factoring in Alinta Energy

• 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/.

Previous report by Maybank:
2025-12-16 Sembcorp - Accretive Purchase, But Higher Gearing & Emissions.

Price targets by 3 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