Sembcorp Industries (U96.SG) +2.2% at $4.18 as utilities business expansion drives interest, according to Dow Jones.

Company has sealed 20-year contract to supply steam, water treatment services to support Jurong Aromatics Corp’s upcoming aromatics complex in Singapore’s Jurong Island.

“(The deal) reinforces our view that SCI’s utilities unit will see strong medium-term growth from new downstream activities on Jurong Island,” says DMG, which has Buy call with $4.98 target.

Earnings contributions won’t be immediate as Sembcorp will first spend $800 million to build multi-utilities facility, gas turbine co-generation plant to supply such services. Both expected to be completed by 3Q 2013.

“There is no significant change to our forecasts as yet, given the long lead time required for the plant to become operational and the fact that tangible contributions are expected only from 2014,” says Kim Eng Securities; has Hold call with $4.38 target. Resistance at last week’s $4.28 high.