Sembcorp Industries (SGX:U96) 17% Net Margin Reinforces Bullish Narrative On Higher Quality Earnings

Simply Wall St.02-26 20:28

Sembcorp Industries (SGX:U96) has posted its FY 2025 numbers with second half revenue of S$2.9b and basic EPS of S$0.25, building on first half revenue of S$2.9b and EPS of S$0.30. Trailing twelve ...

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Trailing twelve ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/utilities/sgx-u96/sembcorp-industries-shares/news/sembcorp-industries-sgxu96-17-net-margin-reinforces-bullish\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sembcorp Industries (SGX:U96) 17% Net Margin Reinforces Bullish Narrative On Higher Quality Earnings</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSembcorp Industries (SGX:U96) 17% Net Margin Reinforces Bullish Narrative On Higher Quality Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-26 20:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/utilities/sgx-u96/sembcorp-industries-shares/news/sembcorp-industries-sgxu96-17-net-margin-reinforces-bullish><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Sembcorp Industries (SGX:U96) has posted its FY 2025 numbers with second half revenue of S$2.9b and basic EPS of S$0.25, building on first half revenue of S$2.9b and EPS of S$0.30. Trailing twelve ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/utilities/sgx-u96/sembcorp-industries-shares/news/sembcorp-industries-sgxu96-17-net-margin-reinforces-bullish\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BLSG","symbol_name":"2倍做多BLSH ETF-Leverage Shares","start_time":0,"source_url":"https://simplywall.st/stocks/sg/utilities/sgx-u96/sembcorp-industries-shares/news/sembcorp-industries-sgxu96-17-net-margin-reinforces-bullish","article_id":"2614042190","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9541000-choice2-main-header/1585186794818"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/sg/utilities/sgx-u96/sembcorp-industries-shares/news/sembcorp-industries-sgxu96-17-net-margin-reinforces-bullish","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2614042190","pubTimestamp":1772108883,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Sembcorp Industries (SGX:U96) has posted its FY 2025 numbers with second half revenue of S$2.9b and basic EPS of S$0.25, building on first half revenue of S$2.9b and EPS of S$0.30. 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Trailing twelve month EPS sits at S$0.55 on S$5.8b in revenue. Over the past few reporting periods the company has seen revenue move from S$3.2b and EPS of S$0.30 in 1H 2024 to S$2.9b and EPS of S$0.25 in 2H 2025. This gives investors a clearer view of how the top line and EPS trend into the current release, with a 17% trailing net margin indicating how much of that revenue is currently falling to the bottom line. See our full analysis for Sembcorp Industries. With the headline numbers on the table, the next step is to see how this earnings profile lines up with the main narratives around growth, profitability and risk that investors have been using to frame Sembcorp Industries. See what the community is saying about Sembcorp Industries SGX:U96 Revenue & Expenses Breakdown as at Feb 2026 Advertisement17% net margin and earnings mix  The trailing 12 month net income of S$984 million on S$5.8b in revenue works out to a 17% net margin, compared with 15.9% reported a year earlier in the analysis data. Analysts' consensus view links this higher margin to more recurring, higher margin income from renewables and long term power purchase agreements. The same consensus also flags pressures such as renewables overcapacity in China and recontracting of Singapore power agreements that could make keeping margins at 17% harder if pricing or utilization weaken.\n     On the supportive side, the consensus narrative highlights growing renewables portfolios and industrial park solutions that can feed into recurring cash flows, which fits with a double digit net margin today. On the cautionary side, it also points to risks like tariff and regulatory changes in markets such as China and Vietnam that could affect how much of future revenue translates into net income.    Valuation gap, P/E 11x versus DCF  At a share price of S$6.07 and a P/E of 11x, the stock trades below peer and industry averages but above the DCF fair value of about S$5.26 cited in the analysis data. Consensus narrative supporters often treat the lower 11x P/E and past multi year earnings growth as a value angle. The same data showing the market price above DCF fair value and a recent year of negative earnings in the analysis set creates a tension that cautious investors will pay attention to.\n     The relative P/E discount versus peers and the Singapore market backs investors who argue the shares are priced more modestly than many integrated utilities. At the same time, the gap between S$6.07 and the S$5.26 DCF fair value and the reference to a recent negative earnings year in the analysis remind you that simple P/E comparisons do not capture cash flow coverage or earnings volatility.    Dividend and interest coverage pressure  The data points out a 4.12% dividend yield, alongside warnings that this payout is not well covered by free cash flow and that interest payments are not well covered by earnings. Critics highlight these coverage flags as a bearish angle, and the numbers give them something concrete to point to, even as revenue and earnings are forecast in the analysis to grow at about 16% and 5.4% per year, which suggests the business itself is not standing still.\n     Weak interest coverage means more of those S$984 million in trailing net profits may need to stay in the business to keep lenders comfortable, limiting room for higher dividends or extra reinvestment. A dividend that is not backed by free cash flow can also force tougher choices later on, especially if the margin stays at 17% but cash conversion or financing costs do not improve.    If you want to see how other investors connect these numbers to the bigger story, you can go straight to the community view on Sembcorp with See what the community is saying about Sembcorp Industries. Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Sembcorp Industries on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. On balance, do you feel the story here leans more toward opportunity or caution? Take a moment to study the underlying numbers for yourself, then round out the picture with 2 key rewards and 2 important warning signs. See What Else Is Out There Sembcorp Industries couples a 4.12% dividend yield with weak free cash flow and interest coverage, which could pressure both future payouts and financial flexibility. If that makes you want more robust income ideas, check out our 450 dividend fortresses to focus on companies where higher yields come with stronger coverage and resilience.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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