Maybank Research Pte Ltd 3 April 2025

Positive Developments Across Singapore’s Corporate Landscape

Sembcorp Industries Expands Stake in Senoko Energy

Sembcorp Industries (SCI) has signed an agreement to acquire up to a 57.1% interest in Lion Power, which holds a 70% stake in Senoko Energy. This deal will increase SCI’s effective stake in Senoko Energy to a maximum of 70%. The maximum purchase consideration is SGD144 million, to be funded through internal cash resources and/or external borrowings. Once completed in 2Q 2025, this acquisition is expected to contribute a 7.6% accretion to SCI’s FY2025 core net profit.

Oiltek International Approved for SGX Mainboard Transfer

Oiltek International has received in-principle approval from the SGX for the transfer of its listing to the mainboard. This will provide the company with greater visibility and recognition among public investors, as well as a wider platform and more diverse investor base for future fundraising opportunities.

CSE Global Adopts Dividend Policy

CSE Global has adopted a firm dividend policy, aiming to provide shareholders with a target annual dividend payout of at least 50% of the group’s net profit in future financial years. This represents a balanced approach between providing immediate returns to shareholders and retaining sufficient earnings to fund future growth.

King Wan Corporation Secures New Contracts

King Wan Corporation has secured SGD40.4 million worth of new mechanical and electrical (M&E) contracts from January to March 2025. These projects include sanitary, plumbing, gas installation, and other works across various residential and commercial developments, with scheduled completion in 2028.

Keppel Limited Divests Stake in Keppel Philippines Holdings

Keppel Limited has divested its entire 29.52% stake in Keppel Philippines Holdings (KPHI) to Kepwealth for PHP462.9 million (SGD10.8 million). The sale consideration was based on an independent valuation of KPHI’s shares.

MIBG Sustainability Research – Country ESG Focus: Singapore

MIBG’s analysis of 54 Singapore companies, representing around 57% of the country’s market capitalization, revealed the following key ESG trends: – Emission intensity is declining in value terms but rising in absolute terms – Renewable energy usage is increasing – Nearly half of the companies have better-than-median scores across various ESG parameters – Social and governance indicators are showing improvement, with the most significant progress seen in REITs, real estate, and technology companies.

Centurion Corp – Initiate Coverage with a BUY Rating

MIBG initiates coverage on Centurion Corp with a BUY recommendation and a target price of SGD1.45, based on a 1x FY2025E price-to-book ratio. Despite the recent share price outperformance, the current valuation of around 10x forward P/E is not considered excessive given the company’s recurring earnings visibility and positive demand-supply dynamics in the Singapore construction sector. Potential re-rating catalysts include the spin-off of some accommodation assets into a REIT and inorganic growth through joint ventures or acquisitions.