UOB Kay Hian analyst Adrian Loh has upgraded his recommendation on Sembcorp Marine (SembMarine) to “hold” despite the company’s continued losses reported in its 3QFY2020 update, on “valuation grounds”.

“With the company continuing to incur losses in 2HFY2020 and likely into 1HFY2021, we do not see a reason to own SembMarine yet,” he says.

In its update, SembMarine said that on top of the losses incurred in the 3QFY2020 and 9MFY2020, the company expects losses to continue into the 4QFY2020 as its Singapore yards gradually resumed production activities since July 2020.

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