Sembcorp Industries is a leading energy, water and marine
group operating across five
continents worldwide. With facilities of over 10,600 megawatts
of gross power capacity and
close to nine million cubic metres of water per day in
operation and under development.
Sembcorp is a trusted provider of essential energy and water
solutions to both industrial and municipal customers. It is also a world leader
in marine and offshore engineering as well as an established brand name in urban
development.
The Group has total assets of S$20 billion and employs over
7,000 employees. Listed on the main board of the Singapore Exchange, it is a
component stock of the Straits Times Index and several MSCI and FTSE indices.
Summary of Sembcorp’s FY2015 Financial Results reported on 17th February 2016
Turnover at S$9.5 billion, down 12%
Profit from Operations at S$631.5million, down 51%
Net Profit at S$548.9 million, down 32%
EPS at 29.2 cents
ROE at 9.4%
Proposing final dividend of 6.0 cents per share, bringing total
dividends for FY2015 to 11.0
cents per share. 5 cents lesser than FY2014.
FY2016 Outlook
The global downturn in the oil and gas sector and
competition in the Singapore power market is expected to continue in 2016. With sound strategies and
strong capabilities, the Group is committed to creating and delivering long-term
value and growth.
Currently , Sembcorp Industries is trading at $2.53 which is about PE 8.66 times. Price is fairly on the high side as compare to Keppel Corp of PE 6.19 times ( EPS $0.84) at $5.20.
Dividend of 11 cents which translate to a yield of 4+% seems fairly decent.
From TA point of view it is on a Reversal trend as the current price of $2.53 is hovering above both 14SMA & 25SMA lines which is generally quite positive.
Also both MACD & RSI are trending higher which may provide further indication that the share price may continue to head higher.
Breaking out of $2.65 with good volume that may propel to drive the share price higher towards $2.90.
Short term TP of $2.90 which is pegged at PE 9.9 times seem quite possible.
Short term TP of $2.90 which is pegged at PE 9.9 times seem quite possible.
(trade base on your own decision)
No comments:
Post a Comment