Stock Name: Semb Corp
Company Name: SEMBCORP INDUSTRIES LTD
Nomura Research in an Aug 5 research report says: "SCI posted an 8% y-o-y rise in 2Q11 net profit to $175 million, in line with our estimate of $171 million, with strong growth from its Singapore utilities operations, which offset weakness in UK utilities.
"Contributions from the Cascale acquisition also helped. Management expects utilities to do better than last year. For 1HFY11, group net profit increased 5% y-o-y to $335 million, in line with our estimate, and accounting for 49.7% of our FY2011F earnings projections of $674 million.
"Our price target of $5.78 is based on a 5% discount to our SOTP valuation (method unchanged). We value the utilities business on DCF, and industrial parks/others on an FY2011F P/E of 8x, in line with peers. MAINTAIN BUY."
Company Name: SEMBCORP INDUSTRIES LTD
| Research House: Nomura | Price Call: BUY | Target Price: 5.78 |
Nomura Research in an Aug 5 research report says: "SCI posted an 8% y-o-y rise in 2Q11 net profit to $175 million, in line with our estimate of $171 million, with strong growth from its Singapore utilities operations, which offset weakness in UK utilities.
"Contributions from the Cascale acquisition also helped. Management expects utilities to do better than last year. For 1HFY11, group net profit increased 5% y-o-y to $335 million, in line with our estimate, and accounting for 49.7% of our FY2011F earnings projections of $674 million.
"Our price target of $5.78 is based on a 5% discount to our SOTP valuation (method unchanged). We value the utilities business on DCF, and industrial parks/others on an FY2011F P/E of 8x, in line with peers. MAINTAIN BUY."
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