SembCorp Industries

[zerobeta]

anyone ever thinks the potential growth from the SG electricity sector once the 33% non-contestable market opened up from government monopoly? this will add SGD 3.5 bln of electricity market for existing players (+50% from current size)

[Shrivathsa]

http://www.sembcorp.com/en/src/downloads...SGXNet.pdf


Anyone vested in this?

What do you all think?

Hi,

There is a clear trend of Sembcorp performing well between May and March, almost a case of Buy in May and Make some Hay.

So, I just exited the counter.

Interestingly this seems to hold true over the last five years.

I am showing below a link to my post on this in 2012

http://sgx-stocks-sti.blogspot.sg/2012/0...tries.html

Also a post highlighting this in 2013

http://sgx-stocks-sti.blogspot.sg/2013/0...tries.html

And the latest is today.

http://sgx-stocks-sti.blogspot.sg/2014/0...tries.html

Cheers

[Art or Science]

http://www.sembcorp.com/en/src/downloads...SGXNet.pdf


Anyone vested in this?

What do you all think?

Hi,

There is a clear trend of Sembcorp performing well between May and March, almost a case of Buy in May and Make some Hay.

So, I just exited the counter.

Interestingly this seems to hold true over the last five years.

I am showing below a link to my post on this in 2012

http://sgx-stocks-sti.blogspot.sg/2012/0...tries.html

Also a post highlighting this in 2013

http://sgx-stocks-sti.blogspot.sg/2013/0...tries.html

And the latest is today.

http://sgx-stocks-sti.blogspot.sg/2014/0...tries.html

Cheers

probably because of ex-dividend?

I bought mine @ slightly below $5 sometime last year and intend to keep it for sometime unless business changes fundamentally or PE too high, etc..

Sembcorp ROE has been dropping.. However, i'm hopeful that its utilities biz can continue to do well.

[Shrivathsa]

It is not yet ex-dividend, it goes ex-dividend in end of April i think.

That works too, to have it as a long term holding.

I am keeping Keppel as my long term and just rotate in and out of Sembcorp

[greengiraffe]

PUBLISHED APRIL 22, 2014

Sembcorp revives property unit
It will develop homes in group's industrial parks

BYLEE MEIXIAN
leemx@sph.com.sg @LeeMeixianBT
PRINT |EMAIL THIS ARTICLE
BT 20140422 LMXSEMBPROP 1054412
Mr Teo: Nanjing and Chengdu in China will be company's first focus
[SINGAPORE] Sembcorp Industries is reactivating Sembcorp Properties, a dormant subsidiary which developed condominiums in Singapore a decade ago, with a new strategy - to develop residential and commercial properties in its existing industrial parks, starting with China.
This is in tandem with its ramped-up efforts to build up urban development as a third pillar of the company, next to its mainstay utilities and marine operations.
In a recent interview, Sembcorp Development CEO Kelvin Teo told The Business Times that he aims to have the group's urban development segment generate a three-digit net profit by 2020, up from the $50 million, or 6 per cent of the group's overall earnings, that it contributed in FY13.
Over the past two decades, Sembcorp Development has been involved in master planning, land preparation and infrastructure development to transform raw land into large-scale urban developments overseas. For the most part, it has been developing industrial parks and now has 11 projects in China, Vietnam and Indonesia.
Describing the strategy shift, Mr Teo said: "Typically in the past, what we did in our land master planning was to sell land to third party (residential and commercial) property developers. Now we twist our business model and ask if we can do it ourselves. This is why we reactivated the subsidiary - to do property."
With the revival of the unit, Sembcorp Properties will become a subsidiary of Sembcorp Development.
Sembcorp Properties became dormant after the 1998 merger between Sembawang Corp and Singapore Technologies Industrial Corp (STIC) which resulted in the present-day Sembcorp. At the time, Sembcorp identified engineering and technology as its competitive advantage and exited many of its other non-core areas. Property development was one of them.
Mr Teo said the company is pursuing property development for several reasons: firstly, as a "catalyst project" to drive new projects it embarks on and convince other project participants to come onboard; and secondly, to set a quality standard for others within its own township settlement.
Of course, this would also address the housing requirements of employees working in those industrial or business parks.
Sembcorp will begin with building mid- to high-end residential developments in the Singapore-Sichuan Hi-tech Innovation Park in Chengdu, Sichuan province, and the Sino-Singapore Nanjing Eco Hi-tech Island in Jiangxinzhou, Jiangsu province.
"China will be our first priority. We see a strong demand for houses in Nanjing and Chengdu; they have reached a very mature stage for housing needs. We have been tracking their monthly housing price trend and market absorption rates. These two cities have moderate growth, so we thought these will be our first focus," Mr Teo said.
"We have no time-frame for when we are building the first development, but it won't be too far off."
Employees at Nanjing, which aims to become a centre for high-tech innovation, are of the "high disposal income type", while those in the Sichuan innovation park tend to be researchers, scientists and bankers, he said.
Both Chinese projects are "strongly endorsed" by the Singapore government and have helped to create employment for many Chinese graduates, attract foreign direct investment to China and improve the Sino-Singapore bilateral relationship.
Mr Teo added that any commercial developments that follow will be amenities to support the residential developments.
Meanwhile, Sembcorp is not ruling out tying up with other developers, local or foreign, for their development strengths or unique capabilities.
While Sembcorp has the advantage of being able to acquire land at lower prices, through negotiations rather than bidding, developers still command a better premium, given their track record and expertise. Besides, land cost is only a small fraction of development costs in China, unlike in Singapore.
To be sure, Sembcorp Development already has existing residential projects in the Wuxi-Singapore Industrial Park, a joint venture with the Wuxi government which Sembcorp has a 45.4 per cent stake in. To attract people to work at the business and IT park there, two residential blocks and a 120-room serviced apartment block operated by Fraser Hospitality have been added.
Ultimately, the urban development pillar is not standalone but enjoys synergy with the group's power and water management capabilities.
"We can offer the total holistic solution to our customers. As a group, we can do it all under one roof, unlike competitors who outsource these services to others and cannot control the services," Mr Teo said.

[ValueMaster]

any views on SCI as a value bet?

Currently trading at only 12 times earnings with a dividend yield of 3% (looks cheap compared to other blue chips trading at 15-20 times earnings, however div yield looks low)
Their ROE seems to be declining over the years but I think it should be able to hold above 15%
Balance sheet looks strong at net cash position (as compared to kep corp which is slightly geared)

about half of its profits comes from marine segment (cyclical) and the other half from utilities which is considered a very stable business.
Overall this makes good balance.

[Nick]

any views on SCI as a value bet?

Currently trading at only 12 times earnings with a dividend yield of 3% (looks cheap compared to other blue chips trading at 15-20 times earnings, however div yield looks low)
Their ROE seems to be declining over the years but I think it should be able to hold above 15%
Balance sheet looks strong at net cash position (as compared to kep corp which is slightly geared)

about half of its profits comes from marine segment (cyclical) and the other half from utilities which is considered a very stable business.
Overall this makes good balance.

I think most of the cash is held under SMM which it cannot access unless the latter pays a dividend.

SMM
Cash: 2.28 billion
Debt: 0.81 billion
Net Cash: 1.47 billion

SCI
Cash: 2.88 billion
Debt: 2.14 billion
Net Cash: 0.74 billion

SCI ex SMM
Cash: 0.60 billion
Debt: 1.33 billion
Net Debt: 0.73 billion

[ValueMaster]

any views on SCI as a value bet?

Currently trading at only 12 times earnings with a dividend yield of 3% (looks cheap compared to other blue chips trading at 15-20 times earnings, however div yield looks low)
Their ROE seems to be declining over the years but I think it should be able to hold above 15%
Balance sheet looks strong at net cash position (as compared to kep corp which is slightly geared)

about half of its profits comes from marine segment (cyclical) and the other half from utilities which is considered a very stable business.
Overall this makes good balance.

I think most of the cash is held under SMM which it cannot access unless the latter pays a dividend.

SMM
Cash: 2.28 billion
Debt: 0.81 billion
Net Cash: 1.47 billion

SCI
Cash: 2.88 billion
Debt: 2.14 billion
Net Cash: 0.74 billion

SCI ex SMM
Cash: 0.60 billion
Debt: 1.33 billion
Net Debt: 0.73 billion

Thanks for the info

[value seeker]

Sembcorp going into MRT infrastructure project.
Marina South – Sinohydro Corporation Ltd. (Singapore Branch) – Sembcorp Design and Construction Pte Ltd Joint Venture (S$488 million)

[Art or Science]

Sembcorp going into MRT infrastructure project.
Marina South – Sinohydro Corporation Ltd. (Singapore Branch) – Sembcorp Design and Construction Pte Ltd Joint Venture (S$488 million)

Thanks for the info.

News from LTA. $1.3B worth of contracts awarded..

http://app.lta.gov.sg/apps/news/page.asp...416c0cb879