- With the completion of the S$5.6b Alinta acquisition expected to happen by end-1H26, we have incorporated its earnings and cashflow into our model. As announced by Sembcorp Industries, the Alinta acquisition would have been earnings-accretive on day one with pro forma EPS for the 12 months to end-1H25 rising by 14% to S$0.65 and ROE expanding from 19.7% to 22.5%.
Earnings upgraded for 2026-28.
- - Read this at SGinvestors.io -
- We highlight that no equity fundraising will be required given that the transaction is fully debt-funded; thus, existing shareholders face zero dilution while capturing the full earnings uplift from day one of completion.
Strategic portfolio diversification into OECD markets.
- - Read this at SGinvestors.io -
- Australia’s stable regulatory environment, strong rule of law, and transparent energy market structures make it a materially lower sovereign-risk jurisdiction than much of Sembcorp’s existing emerging-market exposure in China, India and Southeast Asia which, in our view, enhances the quality and predictability of the company’s portfolio.
Operational outperformance relative to Australian peers.
- Read more at SGinvestors.io.
