Sembcorp Industries Banking on new capacity

Sembcorp Industries FY13 core net profit of S$752m (flat yoy) was in line with consensus but 10% above our forecast due to lower-than-expected tax. Otherwise, there were no major surprises. A final and special DPS of 17 Scts was declared. We believe that the capacity expansion in 2014 could offset the uncertainty of Singapore’s power prices. We keep our FY14-15 core EPS and introduce FY16 numbers. We maintain an Add rating with an unchanged SOP-based target price. The capacity expansion…
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