Update shared on 08 Dec 2025
Fair value Decreased 0.38%Analysts have trimmed their price target for Sembcorp Industries slightly, reflecting a modest recalibration of fair value to approximately S$7.43 from about S$7.46. This follows their incorporation of slightly softer long term revenue growth and profit margin assumptions, partially offset by a marginally higher projected future P/E multiple.
What's in the News
- Sembcorp is exploring an IPO in Mumbai for its Indian renewables arm, Sembcorp Green Infra Limited, targeting a launch in about eight to nine months, with Citi, HSBC and Axis Capital mandated as advisers (Reuters).
- Sembcorp Green Infra recently secured a 150 MW firm and dispatchable renewable energy project from Indian state utility SJVN Ltd, strengthening its India growth pipeline.
- The group is expanding its Indian portfolio through an agreement to acquire a unit of ReNew, adding 300 MW of solar capacity to Sembcorp Green Infra.
- Sembcorp is in advanced talks to acquire Australian retailer Alinta Energy, a move that could accelerate its transition strategy while adding significant generation and retail scale in Australia (DataRoom).
- The potential Alinta deal has effectively sidelined an earlier idea to combine Alinta with EnergyAustralia, as regulators are seen as unlikely to approve a merger of two large, Chinese owned utilities in a sensitive market (DataRoom).
Valuation Changes
- Fair Value: Trimmed slightly from SGD 7.46 to about SGD 7.43 per share, implying a modestly lower assessed intrinsic value.
- Discount Rate: Unchanged at approximately 5.84 percent, indicating no revision to the risk or cost of capital assumptions.
- Revenue Growth: Reduced slightly from around 4.57 percent to about 4.38 percent, reflecting a more conservative long term growth outlook.
- Net Profit Margin: Eased marginally from roughly 17.37 percent to about 17.24 percent, pointing to a small downward adjustment in profitability expectations.
- Future P/E: Raised slightly from about 12.86x to roughly 12.98x, suggesting a modestly higher valuation multiple applied to forward earnings.
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