0317 GMT - Sembcorp Industries could have several drivers to support a 2H recovery after its 1H results came in below expectations, says Phillip Securities Research's Paul Chew in a note. He expects the Singapore energy company to benefit from the commercialization of its 600 megawatt power plant in 2H. The monetization of its excess gas and a land sales pipeline could also contribute to its earnings, the analyst adds. However, he flags that the renewable energy segment is seasonally weaker in 2H and certain challenges in China remain. Phillip Securities Research raises its rating to buy from accumulate and lifts its target price to 7.21 Singapore dollars from S$7.00 after factoring in contributions from Sembcorp's acquisition of Alinta Energy. Shares decline 0.5% to S$6.01.
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