SembCorp Industries

Thread Rating:
  • 1 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
(24-07-2020, 09:04 AM)¯|_(ツ)_/¯ Wrote: There are definitely many reasons for the demerger.

However, I speculate that the strew that breaks the camel would be the thought of SMM drawing down the remaining $0.5b line of credit.

Simply this thought will cause a lot of sleepless nights.

Stay safe and stay healthy, everyone.
Heart

I think the $0.5b is no longer valid... the existing loan will all be converted to SMM shares via debt to equity swap and distributed to SCI shareholders.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
(24-07-2020, 09:04 AM)¯|_(ツ)_/¯ Wrote: There are definitely many reasons for the demerger.

However, I speculate that the strew that breaks the camel would be the thought of SMM drawing down the remaining $0.5b line of credit.

Simply this thought will cause a lot of sleepless nights.

Stay safe and stay healthy, everyone.
Heart

I think the $0.5b is no longer valid... the existing loan will all be converted to SMM shares via debt to equity swap and distributed to SCI shareholders.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
Rainbow 
Obviously.
SCI don't mind holding on to SM as long as SM don't intend to drawn down the $0.5b credit. Own view.

With the demerger, everyone in SCI can sleep soundly now.
Tongue

Record date/time: 10 Sep 2020 5:30pm

Wear masks and keep your social distance, Specuvestor.
Heart
Reply
Rainbow 
Obviously.
SCI don't mind holding on to SM as long as SM don't intend to drawn down the $0.5b credit. Own view.

With the demerger, everyone in SCI can sleep soundly now.
Tongue

Record date/time: 10 Sep 2020 5:30pm

Wear masks and keep your social distance, Specuvestor.
Heart
Reply
Rainbow 
Divestment
The consideration for the sale took into account the uncertainty of the marine industry outlook and the limited remaining operating period before the business licence expires. The Group’s carrying value of this investment was S$27 million as at June 30, 2020. A S$30 million impairment charge on the investment was taken in the Group’s financial results for the half year ended June 30, 2020.  
https://links.sgx.com/FileOpen/Sembcorp%...eID=630116

Stay home and stay safe, everyone.
Heart
Reply
Rainbow 
Divestment
The consideration for the sale took into account the uncertainty of the marine industry outlook and the limited remaining operating period before the business licence expires. The Group’s carrying value of this investment was S$27 million as at June 30, 2020. A S$30 million impairment charge on the investment was taken in the Group’s financial results for the half year ended June 30, 2020.  
https://links.sgx.com/FileOpen/Sembcorp%...eID=630116

Stay home and stay safe, everyone.
Heart
Reply
Now that spin off is ex and market is closed, I would think SCI should trade closer to a utility company if it can progressively increase its dividend coupled with paying down its debt for next few years as interest rate environment remains low, though management quality might not be top notch
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
Now that spin off is ex and market is closed, I would think SCI should trade closer to a utility company if it can progressively increase its dividend coupled with paying down its debt for next few years as interest rate environment remains low, though management quality might not be top notch
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
(13-09-2020, 09:05 PM)Curiousparty Wrote: SCI will trade back to $2 in a few years time.... Buy SCI for long term....easy play to make easy money...

This posting is clearly promoting SCI though the disclaimer says otherwise.
It would be better if you could enlighten us how you work out that $2 target price.
Reply
(13-09-2020, 09:05 PM)Curiousparty Wrote: SCI will trade back to $2 in a few years time.... Buy SCI for long term....easy play to make easy money...

This posting is clearly promoting SCI though the disclaimer says otherwise.
It would be better if you could enlighten us how you work out that $2 target price.
Reply
Pls refer to the latest analyst report by CIMB with a price target of $1.95,based on CY 2021 Group P/BV ..

If one bothers to check up SCI historical EPS (without marine segment), in good years, EPS was easily more than 20 cents.
If one were to assign a PE of just 10 (think regional utilities have higher PE 15 or higher), one can arrive at $2.

SCI is a diversified player in terms of energy sectors (e.g. renewable, oil, gas, etc.) and emerging countries with growing demand (China, India, etc).

I feel that PE should be much closer to 15 or even higher, surely not at current PE level. Once SCI has shaken off the shadow of SCM, it will be on its own road to the moon/sun.

Got the feeling that institutional investors should be on the buying spree/prowl ..
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply
Pls refer to the latest analyst report by CIMB with a price target of $1.95,based on CY 2021 Group P/BV ..

If one bothers to check up SCI historical EPS (without marine segment), in good years, EPS was easily more than 20 cents.
If one were to assign a PE of just 10 (think regional utilities have higher PE 15 or higher), one can arrive at $2.

SCI is a diversified player in terms of energy sectors (e.g. renewable, oil, gas, etc.) and emerging countries with growing demand (China, India, etc).

I feel that PE should be much closer to 15 or even higher, surely not at current PE level. Once SCI has shaken off the shadow of SCM, it will be on its own road to the moon/sun.

Got the feeling that institutional investors should be on the buying spree/prowl ..
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply
(08-09-2020, 06:58 PM)specuvestor Wrote: Now that spin off is ex and market is closed, I would think SCI should trade closer to a utility company if it can progressively increase its dividend coupled with paying down its debt for next few years as interest rate environment remains low, though management quality might not be top notch

Utilities generally trade closer to book value but I don’t think $1.95 is close to book value after SMM spin off
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
(08-09-2020, 06:58 PM)specuvestor Wrote: Now that spin off is ex and market is closed, I would think SCI should trade closer to a utility company if it can progressively increase its dividend coupled with paying down its debt for next few years as interest rate environment remains low, though management quality might not be top notch

Utilities generally trade closer to book value but I don’t think $1.95 is close to book value after SMM spin off
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
CIMB report => Dec 20F => Total equity = $3487 mil => $1.95.

Currently only trading at 0.67 P/BV.

don't expect SCI's price to double a few times like iFast in the next few years. But hitting $2 should not be a tall order.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply
CIMB report => Dec 20F => Total equity = $3487 mil => $1.95.

Currently only trading at 0.67 P/BV.

don't expect SCI's price to double a few times like iFast in the next few years. But hitting $2 should not be a tall order.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply
Rainbow 
Not sure about its (future) stock price but SCI is definitely a good corporate citizen.

SembCorp Energy for Good Fund
The Fund was launched in conjunction with the start of the company’s annual Sembcorp Gives Back Week, a global employee-led volunteering initiative. A month-long internal fundraising campaign in Singapore will also begin today. The Sembcorp Energy for Good Fund will match staff donations dollar-for-dollar, with a total target of S$100,000. 100% of donations will go towards the CFS Sayang Sayang Fund, a fund driven by the community to support vulnerable groups adversely impacted by the COVID-19 pandemic. 
Catherine Loh, CEO of The Community Foundation of Singapore, said: “Many charities are seeing increased demand for their services and are working tirelessly to provide assistance to a growing number of people coming forward to seek help. We are glad to see the Sembcorp Energy for Good Fund lend a helping hand to charities – especially when they need it the most. We are proud to partner Sembcorp and NTUC to strengthen Singapore’s social compact and our society’s cohesion, especially now when our shared success can only come from solidarity.” 
Fahmi Aliman, Director of Operations and Mobilisation Division Secretariat of NTUC, said: “In this time of national crisis, it is extremely generous of Sembcorp to extend a token of appreciation to our essential services workers in the energy, water, waste and environmental services. This show of support is in line with NTUC’s call for employers and society at large to recognise the hard work of such workers who have gone beyond their call of duty to keep the nation running amidst the pandemic. Such efforts exemplify the spirit of one united Singapore.” 
Wong Kim Yin, Group President & CEO of Sembcorp Industries, said: “At Sembcorp, sustainability is our business. As we deliver essential services, we also want to do good for our people and communities. The Sembcorp Energy for Good Fund builds on this commitment. The Fund will support smaller charities with their utilities expenses, to help defray their operating costs. We also want to show our appreciation to workers who have helped keep our nation running smoothly. My sincere thanks to our partners CFS and NTUC for their support in this effort.”
https://links.sgx.com/FileOpen/Sembcorp%...eID=632239

Stay home and stay safe, everyone
Heart
Reply
Rainbow 
Not sure about its (future) stock price but SCI is definitely a good corporate citizen.

SembCorp Energy for Good Fund
The Fund was launched in conjunction with the start of the company’s annual Sembcorp Gives Back Week, a global employee-led volunteering initiative. A month-long internal fundraising campaign in Singapore will also begin today. The Sembcorp Energy for Good Fund will match staff donations dollar-for-dollar, with a total target of S$100,000. 100% of donations will go towards the CFS Sayang Sayang Fund, a fund driven by the community to support vulnerable groups adversely impacted by the COVID-19 pandemic. 
Catherine Loh, CEO of The Community Foundation of Singapore, said: “Many charities are seeing increased demand for their services and are working tirelessly to provide assistance to a growing number of people coming forward to seek help. We are glad to see the Sembcorp Energy for Good Fund lend a helping hand to charities – especially when they need it the most. We are proud to partner Sembcorp and NTUC to strengthen Singapore’s social compact and our society’s cohesion, especially now when our shared success can only come from solidarity.” 
Fahmi Aliman, Director of Operations and Mobilisation Division Secretariat of NTUC, said: “In this time of national crisis, it is extremely generous of Sembcorp to extend a token of appreciation to our essential services workers in the energy, water, waste and environmental services. This show of support is in line with NTUC’s call for employers and society at large to recognise the hard work of such workers who have gone beyond their call of duty to keep the nation running amidst the pandemic. Such efforts exemplify the spirit of one united Singapore.” 
Wong Kim Yin, Group President & CEO of Sembcorp Industries, said: “At Sembcorp, sustainability is our business. As we deliver essential services, we also want to do good for our people and communities. The Sembcorp Energy for Good Fund builds on this commitment. The Fund will support smaller charities with their utilities expenses, to help defray their operating costs. We also want to show our appreciation to workers who have helped keep our nation running smoothly. My sincere thanks to our partners CFS and NTUC for their support in this effort.”
https://links.sgx.com/FileOpen/Sembcorp%...eID=632239

Stay home and stay safe, everyone
Heart
Reply
Already $1.4 which in my own view is still very very cheap , considering that this is a firesale price due to the millstone from Marine segment !

Analysts may be rushing to do many re-rating later on !!!
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply
Already $1.4 which in my own view is still very very cheap , considering that this is a firesale price due to the millstone from Marine segment !

Analysts may be rushing to do many re-rating later on !!!
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)