Want to see SG:U96 full AI Analyst Report?
Top Page
Sembcorp Industries
(SGX:U96)
Select Model
Select Model
Rating:60Neutral
Price Target:
S$6.00
▲(13.85% Upside)
Action:Reiterated
Date:08/06/26
Overall score reflects strong profitability and shareholder returns (low P/E and ~4.5% yield) supported by resilient FY2025 performance and liquidity, but tempered by high leverage and uneven cash-flow conversion. Technicals also weigh on the score, with price below key moving averages and negative MACD, aligning with management’s cautious near-term operational headwinds for FY2026.
Positive Factors
Resilient underlying profit and ROE
Sembcorp’s sustained ~USD1bn underlying profit and an 18.2% ROE provide a durable earnings base and internal capital generation. This supports steady dividends, funds renewables and IUS expansion, and gives management flexibility to pursue M&A while absorbing cyclical earnings swings.
Negative Factors
Elevated leverage and net debt levels
High debt and net leverage constrain financial flexibility and increase interest and refinancing risk. With net debt/EBITDA near 3.9x, weaker cash conversion or project delays could pressure covenants, limit incremental M&A or capex capacity and amplify earnings stress in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient underlying profit and ROE
Sembcorp’s sustained ~USD1bn underlying profit and an 18.2% ROE provide a durable earnings base and internal capital generation. This supports steady dividends, funds renewables and IUS expansion, and gives management flexibility to pursue M&A while absorbing cyclical earnings swings.
Read all positive factors
Sembcorp Industries (U96) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$10.37B
Dividend Yield4.29%
Average Volume (3M)4.64M
Price to Earnings (P/E)17.4
Beta (1Y)0.60
Revenue Growth7.75%
EPS Growth-41.04%
CountrySG
Employees4,629
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.33
Shares Outstanding1,787,547,700
10 Day Avg. Volume4,602,850
30 Day Avg. Volume4,637,266
Financial Highlights & Ratios
PEG Ratio-3.12
Price to Book (P/B)1.93
Price to Sales (P/S)1.85
P/FCF Ratio72.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$7.23Price Target Upside37.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.52
Revenue Forecast (FY)S$7.75B
Sembcorp Industries Business Overview & Revenue Model
Company Description
Sembcorp Industries Ltd. is an investment holding company, which engages in the production and supply of utilities services, terminalling and storage of petroleum products and chemicals, and the provision of energy and urban solutions. It operates...
How the Company Makes Money
Sembcorp Industries makes money primarily by developing/owning/operating energy and utilities assets and selling the resulting output and services under contracts and market-based arrangements. Key revenue streams typically include: (1) Electricit...
Sembcorp Industries Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Neutral
The call presented a balanced picture: near‑term reported earnings and the Renewables segment were weak (H1 underlying net profit down 25%, renewables down 48%) and group leverage rose materially after the Alinta acquisition. Offsetting this, the strategic acquisition of Alinta materially strengthens the group's pro forma earnings and cash flow profile (Alinta H1 underlying profit +129% YoY), management increased the interim dividend while maintaining liquidity, and several operational catalysts (Taweelah C, hydrogen‑ready plant, Micron PPAs, Wilton powered land) plus favorable July market conditions support a stronger second half outlook. Management expects H2 2026 to be meaningfully stronger and highlighted capital discipline and multiple growth opportunities, but elevated post‑transaction leverage and China/renewables resource risks remain key near‑term negatives.Positive Updates
Group top-line and adjusted EBITDA (pro forma with Alinta)
Reported H1 2026 turnover SGD 3.8 billion; adjusted EBITDA SGD 947 million. On a pro forma basis including Alinta for the full period: turnover SGD 5.6 billion and adjusted EBITDA SGD 1.4 billion, demonstrating a materially stronger combined earnings base with Alinta included.
Negative Updates
Significant decline in reported underlying net profit
Reported underlying net profit fell 25% year‑on‑year from SGD 491 million to SGD 369 million in H1 2026, reflecting weaker spark spreads, renewables resource shortfalls and one‑off transactional items.
Read all updates
Q2-2026 Updates
Positive
Negative
Group top-line and adjusted EBITDA (pro forma with Alinta)
Reported H1 2026 turnover SGD 3.8 billion; adjusted EBITDA SGD 947 million. On a pro forma basis including Alinta for the full period: turnover SGD 5.6 billion and adjusted EBITDA SGD 1.4 billion, demonstrating a materially stronger combined earnings base with Alinta included.
Read all positive updates
Company Guidance
Management said it expects a meaningfully stronger H2 and reiterated its targets and balance‑sheet plans: H1 2026 reported turnover SGD 3.8bn, EBITDA ~SGD 768m, adjusted EBITDA SGD 947m, underlying net profit SGD 369m (down 25% y/y), EPS SGD 0.207 and annualized ROE 13% (pro‑forma with Alinta: turnover SGD 5.6bn, EBITDA SGD 1.2bn, adjusted EBITDA SGD 1.4bn, underlying net profit SGD 558m, EPS SGD 0.314, ROE 19.1%); interim dividend was raised to SGD 0.11 (from 0.09). Key operational and guidance metrics driving H2 upside include CCP4 and a 600MW hydrogen‑ready plant ramping (CCP4 on track for progressive commissioning, H2 completion Q4), 80% of Sembcorp’s gas‑fired fleet (ex‑Senoko) contracted for 5+ years, July USEP ~SGD 240/MWh, Alinta H1 run‑rate underlying profit SGD 231m with an expected ~SGD 100m contribution in H2, Alinta platform ~3.4GW, Renewables 6.6GW under construction and 3.6GW India pipeline, IUS landbank >18,000 ha and ready‑built GFA >1.1m sqm, adjusted free cash flow ~SGD 700m (adjusted), net debt ~SGD 13.9bn (up ~SGD 6bn on Alinta), pro‑forma net debt/adjusted EBITDA ~5.3x, weighted average cost of debt ~4.3% (Alinta funding ~3.4%, tenor ~6.6 yrs), 57% fixed hedging and committed undrawn facilities ~SGD 3.6bn.Sembcorp Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.63B | 5.80B | 6.42B | 7.04B | 7.83B | 6.41B |
| Gross Profit | 1.22B | 1.29B | 1.50B | 1.57B | 1.23B | 819.00M |
| EBITDA | 1.26B | 2.04B | 2.07B | 1.83B | 1.29B | 677.00M |
| Net Income | 598.00M | 984.00M | 1.01B | 942.00M | 848.00M | 279.00M |
Balance Sheet | ||||||
| Total Assets | 25.71B | 18.43B | 18.18B | 15.50B | 16.02B | 14.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.66B | 1.22B | 985.00M | 830.00M | 1.29B | 1.43B |
| Total Debt | 15.49B | 9.70B | 9.40B | 7.56B | 7.36B | 7.65B |
| Total Liabilities | 19.92B | 12.56B | 12.52B | 10.63B | 11.80B | 10.48B |
| Stockholders Equity | 5.47B | 5.54B | 5.36B | 4.59B | 3.98B | 3.77B |
Cash Flow | ||||||
| Free Cash Flow | -133.00M | 148.00M | -196.00M | 645.00M | 1.04B | 929.00M |
| Operating Cash Flow | 752.00M | 1.10B | 1.41B | 1.48B | 1.65B | 1.22B |
| Investing Cash Flow | -5.50B | -517.00M | -1.44B | -878.00M | -1.39B | -100.00M |
| Financing Cash Flow | 5.19B | -335.00M | 154.00M | -1.10B | -203.00M | -855.00M |
Sembcorp Industries Technical Analysis
Neutral
5.27
Price Trends
5.85
Negative
6.15
Negative
6.05
Negative
Market Momentum
-0.02
Negative
58.92
Neutral
82.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U96, the sentiment is Neutral. The current price of 5.27 is below the 20-day moving average (MA) of 5.51, below the 50-day MA of 5.85, and below the 200-day MA of 6.05, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 82.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:U96.
Sembcorp Industries Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | S$946.18M | 3.75 | 35.49% | 3.74% | 18.47% | 137.01% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | S$836.06M | 9.39 | 7.15% | 4.78% | 5.25% | 11.02% | |
62 Neutral | S$422.41M | 2.99 | 6.82% | 6.75% | ― | ― | |
61 Neutral | S$19.57B | 39.19 | 5.07% | 2.89% | 10.65% | -44.54% | |
60 Neutral | S$10.37B | 17.44 | 18.30% | 4.74% | 7.75% | -41.04% | |
58 Neutral | S$640.54M | 4.67 | 2.22% | 7.47% | -36.35% | -23.32% |
* Utilities Sector Average
SG:U96
Sembcorp Industries
5.83
-0.04
-0.61%
SG:BHK
SIIC Environment Holdings
0.16
<0.01
3.14%
SG:U9E
China Everbright Water
0.23
-0.01
-5.46%
SG:F9D
Boustead Singapore
1.86
0.40
27.31%
SG:BWM
Zheneng Jinjiang Environment Holding Co., Ltd.
0.58
0.14
33.41%
SG:BN4
Keppel Corporation Limited
11.17
3.23
40.68%
Sembcorp Industries Corporate Events
Sembcorp Shareholders Back Board, Dividend at 28th AGM
May 25, 2026
Sembcorp Industries held its 28th annual general meeting in Singapore, where the board, senior management and advisers briefed shareholders on the group’s 2025 performance and key developments, and conducted a live question-and-answer and po...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.