SINGAPORE (Dec 9): SembCorp Industries has been unduly punished in recent months by investors who have undervalued its utilities business and created a value opportunity, CIMB says in a note.

The brokerage says the utilities business is valued at 0.6 times price-to-book value, a "trough valuation."

But earnings growth may hit 14% for fiscal year 2016-2017, after two power plants are commissioned in Indonesia, which CIMB says “should plug the gap arising from SembCorp Marine’s weakness given the challenging offshore & marine market”.

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