Broker Name: CGS International

Date of Report: March 17, 2026

Excerpt from CGS International report

Report Summary

• Sembcorp Industries (SCI) is well protected from global gas price shocks due to long-term power contracts and secure piped natural gas supply from Indonesia and Malaysia; management expects low risk to gas supply and sees earnings upside if tensions persist.
• Despite higher leverage from the Alinta Energy acquisition, SCI plans to steadily increase its dividend payout ratio to 60-70%, while focusing on renewable energy growth and maintaining manageable net debt levels.
• SCI’s renewable energy projects in China face curtailment, but grid expansion plans should gradually ease this; SCI aims for 25GW gross RE installed capacity by 2028 and significant decarbonisation progress.
• Financial forecasts suggest strong revenue growth from 2026 onwards, with improving operating EBITDA and dividend yields, positioning SCI as a top pick among Singapore stocks and a leading renewable energy player in ASEAN.
• SCI received AA in MSCI ESG Ratings and continues to improve its ESG strategy, targeting net-zero emissions by 2050 and substantial capex for renewable energy expansion.

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