Broker: CGS International
Date of Report: December 12, 2025

Excerpt from CGS International report

Report Summary

• Sembcorp Industries (SCI) is acquiring 100% of Alinta Energy in Australia for A\$5.6bn (S\$4.8bn), adding 3.4GW of generation capacity and expanding its renewable energy pipeline to 10.4GW.
• The acquisition, funded by cash and a bridging loan (no equity raising), is expected to be earnings accretive, raising pro-forma earnings by 14%, but will increase net debt/EBITDA from 3.6x to 4.6x.
• SCI maintains its dividend guidance and continues to target 25GW installed renewable capacity by 2028, with 75% of S\$14bn capex allocated to renewables and a goal to halve emissions intensity by 2028.
• Despite market concerns over the reintroduction of coal into SCI’s portfolio, coal will form less than 5% of group revenue, while the company’s strong ESG performance supports its status as a leading renewable energy player in ASEAN.
• The broker reiterates an “Add” call on SCI due to its undemanding valuations, strong renewable expansion plans, and potential catalysts such as an India RE IPO, but lowers the target price to S\$7.77.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com