UOBKayhian on 8 May 2015
FY15F PE (x): 10.5
FY16F PE (x): 10.6
Results were below expectations. Sembcorp Industries (SCI) reported 1Q15 net profit
of S$142m (-23% yoy), which was 18% of our forecast of S$790m for 2015. Earnings
were 10% below our expectation. The utilities segment posted a net profit of S$74.5m (-
19% yoy), while the marine segment delivered a net profit of S$65m (-13% yoy). These
two segments account for 98% of group net profit.
Target price tweaked marginally from S$5.20 to S$5.10, based on sum-of-the parts
valuation of S$5.08/share. We factor in our target price S$2.92 for SMM and value
SCI’s utilities business at 12x 2016F PE. Maintain BUY
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