Wednesday, July 5, 2023

Sembcorp Industries Ltd

 Indeed a pullback is happening now! 

I think is healthy to correct as the price has run up too fast and too much!

Looking at their financial nos, The Current Ratio of less than 1 of which I think is not so financial well-being for the company. 

The Current Ratio,  also known as the working capital ratio,  measures the capability of a business to meet its short-term obligations that are due within a year. The ratio considers the weight of total assets versus total current liabilities.  It indicates the financial health of a company and how it can maximize the liquidity of its current assets to settle debt and payables.

Current Ratio = total current assets / total current liabilities. 

Current Ratio = 3076 / 3327 = 0.92.

The cash flow also not so healthy as it is using more than the cash it has generated. Negative cash flow..

EpS is 0.3866.
PE is 14.6x

The Average median PE for SMI is about PE 7x. 
I think the current PE is trading at a premium price level.

The above is just my observation! 

Please dyodd.

 Sembcorp Industries (Sembcorp) is a leading energy and urban solutions provider, driven by its purpose to do good and play its part in building a sustainable future.

Headquartered in Singapore, Sembcorp leverages its sector expertise and global track record to deliver innovative solutions that support the energy transition and sustainable development. By focusing on growing its Renewables and Integrated Urban Solutions businesses, it aims to transform its portfolio towards a greener future and be a leading provider of sustainable solutions.

Sembcorp has a balanced energy portfolio of 18.5GW, with 11.0GW of gross renewable energy capacity comprising solar, wind and energy storage globally. The company also has a proven track record of transforming raw land into sustainable urban developments, with a project portfolio spanning over 12,000 hectares across Asia.

Sembcorp is listed on the main board of the Singapore Exchange. It is a constituent stock of the Straits Times Index and sustainability indices including the FTSE4Good Index and the iEdge SG ESG indices.

Renewable Energy

At Sembcorp, we are committed to transforming our portfolio from brown to green to support the global energy transition. 

With a gross renewable energy capacity of 11.0GW installed and under development, our renewable energy portfolio comprises wind, solar and energy storage in our focus markets, and we continue to target growth in this sector.

To help our partners on their own decarbonisation goals, our carbon management business, GoNetZeroTM, provides one-stop access to renewable energy and carbon management solutions, including high quality and verified renewable energy certificates and carbon credits.

Conventional Energy

Present in: Bangladesh, China, Myanmar, Oman, Singapore, UAE, UK and Vietnam​

As an established power player with 7.4GW of conventional power capacity in key markets, we provide reliable energy to industries and communities, ensuring quality of life and economic development in the countries we operate in.

Our competitive edge lies in our global track record as an originator, owner or investor, operator and optimiser of energy assets with strong operational, management and technical capabilities. We have proven capabilities operating gas-fired power plants with technology for greater efficiency and lower emissions, including combined cycle gas turbines, as well as combined power and desalination.

We also offer a wide variety of gas and gas-related services such as gas sourcing, importation and trading. As Singapore's first commercial importer and retailer of piped natural gas, we are also its largest player in the natural gas market. In addition, we provide customers access to a global portfolio of liquefied natural gas (LNG) sources as an importer of LNG for Singapore.

The megatrends of decarbonisation, urbanisation and electrification are continuing to shape our world. At Sembcorp, we are driven by a clear purpose to play our part in building a sustainable future. With our strategy fully anchored in this purpose, sustainability is front and centre of all that we do. It is our business.

Chart wise,  bullish mode!

She had a good running up from 3.00 to current price of 5.75.

I think price has run ahead of its future earnings potential looks rather over extended! Too much hype and analyst upgrading plus new contracts winning. 

Short term wise,  I think likely to see some profit takings/correction!

Please dyodd.

Our vision is to be a leading provider of sustainable solutions. We aim to transform our portfolio from brown to green, by focusing on growing our renewables and integrated urban solutions businesses. To support the global energy transition and sustainable development, we target to grow Group net profit contribution from sustainable solutions to 70% by 2025.

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