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Analysis of Sembcorp Industries (U96.SI)
19 May 2022 (419 views)  

I just bought 20,000 shares of Sembcorp Industries at $2.93.

The stock price was at a low of $1.85 on 13 Sep 2021. It has increased by 58% over the past 8 months. 

The increase in stock price was triggered by the disposal of its interest in Sembcorp Marine. With this disposal, Sembcorp Industries is no longer affected by the uncertainties in the marine sector.

At the current price, the stock has a PER (TTM) of 18.99 and a dividend yield of 3.17%. This is not cheap. 

However, I saw that its trailing PER is 17.94 and the forward PER is 11.49. The analysts (who provided the forward PER) expect the earnings to increase by 56% (i.e. 17.94/11.48) for the next financial year.  

I also read several reports that Sembcorp Industries is actively involved in solar energy installations. They are a major contractor in several government projects to develop solar energy in Singapore, using water based installations and land based solar farms. 

I expect these projects to be profitable and to contribute to a large source of revenue to Sembcorp Industries. (This is my speculation - as I have not studied much into this opportunity).

Anyway, I have made a small investment (in addition to my existing holders) and will pay further attention to future development.

Tan Kin Lian
 


Analysis of Sembcorp Industries (U96.SI)
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I just bought 20,000 shares of Sembcorp Industries at $2.93.

The stock price was at a low of $1.85 on 13 Sep 2021. It has increased by 58% over the past 8 months. 

The increase in stock price was triggered by the disposal of its interest in Sembcorp Marine. With this disposal, Sembcorp Industries is no longer affected by the uncertainties in the marine sector.

At the current price, the stock has a PER (TTM) of 18.99 and a dividend yield of 3.17%. This is not cheap. 

However, I saw that its trailing PER is 17.94 and the forward PER is 11.49. The analysts (who provided the forward PER) expect the earnings to increase by 56% (i.e. 17.94/11.48) for the next financial year.  

I also read several reports that Sembcorp Industries is actively involved in solar energy installations. They are a major contractor in several government projects to develop solar energy in Singapore, using water based installations and land based solar farms. 

I expect these projects to be profitable and to contribute to a large source of revenue to Sembcorp Industries. (This is my speculation - as I have not studied much into this opportunity).

Anyway, I have made a small investment (in addition to my existing holders) and will pay further attention to future development.

Tan Kin Lian