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Analysts believe more upside to go even as Sembcorp posts 'blow out' first half earnings

Bryan Wu
Bryan Wu8/10/2022 01:55 PM GMT+08  • 6 min read
Analysts believe more upside to go even as Sembcorp posts 'blow out' first half earnings
Sembcorp's wind farm in Gujarat, India / Photo: Sembcorp Industries
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Analysts from UOB Kay Hian, DBS Group Research, OCBC Investment Research and CGS-CIMB Research have reiterated their “buy” calls for Sembcorp Industries and raised their target prices (TP) to $4.10, $3.80, $3.60 and $3.80 from $3.59, $3.70, $2.90 and $3.66 respectively, while Maybank Securities raised its TP from $3.40 to $4.50 after initiating coverage for the stock with a “buy” call on Aug 2.

On Aug 5, Sembcorp, the Straits Times Index’s (STI) top performer this year, announced its impressive set of 1HFY2022 results, recording a turnover of $4.8 billion, up 45% from $3.3 billion in 1HFY2021.

Surging energy prices have powered Sembcorp to mark a net profit before exceptional items of $490 million, up 94% from 1HFY2021. Its conventional energy segment turned a profit of $397 million, up 115% for the same period from a loss-making first half last year, as higher electricity prices in Singapore and India were assisted by realised gains from favourable gas hedges the company entered in 2021.

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