Broker: Maybank Research Pte Ltd
Date of Report: June 5, 2026
Excerpt from Maybank Research Pte Ltd report
Report Summary
- Stock Focus: Sembcorp Industries (SCI SP)
- Action/Rating: HOLD
- Target Price: SGD6.00
- Current Price (at report date): SGD6.21
- Key Highlight: Sembcorp Industries is expanding its footprint in the UAE by participating as a minority partner in a 2.6GW power project, backed by a 29-year PPA, with completion expected by 2029. SCI will hold a 20% stake in the project development and 30% in the operations and maintenance company.
- Outlook: The report maintains a HOLD rating due to limited earnings growth. The target price is raised to SGD6.00 on a rolled-forward SOTP (sum-of-the-parts) model, despite a 5-8% cut to core PATMI projections amid weaker renewable and urban solutions trends and higher gearing risks.
- Investment Implication: Investors should note the limited upside as reflected in the HOLD recommendation, with the stock trading near the target price. Key risks include lower contributions from renewables, integration risks from acquisitions, and higher gearing.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank-keresearch.com
