Daiwa raises Sembcorp Industries target to $5.58

Stock Name: Semb Corp
Company Name: SEMBCORP INDUSTRIES LTD
Research House: Daiwa

Daiwa has raised its target price for Singapore energy, water, and marine group Sembcorp Industries (SCIL.SI) to $5.58 from $5.42 and kept its outperform rating on the firm.

    

Sembcorp Industries said on Friday its fourth quarter net profit fell 12% to $228.7 million from a year earlier mainly due to weaker performance from marine and utilities.

Daiwa said Sembcorp Industries’ results were better than expected due to strong sales at a residential property development project in Vietnam.
 

The brokerage has raised its 2011 adjusted net profit forecast for Sembcorp Industries by 15.7% to $692 million.

“Potential positive share price catalysts are new rig-building contract announcements by SembMarine and our view that the company could benefit financially by selling its utilities projects to a trust,” said Daiwa in a report.

At 10:01 a.m., shares of Sembcorp Industries were 1.8% lower at $4.81 and have fallen 6.4% since the start of the year.