Adrian Loh, an analyst from UOB Kay Hian, maintained the Buy rating on Sembcorp Industries. The associated price target was lowered to S$7.90.
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Adrian Loh has given his Buy rating due to a combination of factors that highlight Sembcorp Industries’ strong financial position and growth potential. The company’s first half of 2025 results showed resilience, with a net profit of S$536 million, aligning with expectations. This performance was bolstered by increased dividends, growth in the renewables sector, and anticipated earnings contributions from Senoko in the second half of the year.
Moreover, the recent decline in share price is seen as an overreaction, providing an attractive entry point for investors focused on yield. Sembcorp’s robust balance sheet, characterized by a significant portion of fixed-rate, long-term debt, and strong free cash flow, further supports the Buy recommendation. The combination of these factors suggests a promising outlook for the company, making it an appealing option for patient investors.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a S$7.50 price target.
SCRPF’s price has also changed dramatically for the past six months – from $3.850 to $6.100, which is a 58.44% increase.