Sembcorp Industries

Sembcorp Industries +1% at $4.14 in thin trade despite improved 2Q10 results as investors prefer to wait for outcome of SembMarine's tender bid for some of Petrobras' 28 rig projects, possibly due this month. Still, valuations remain attractive given it offers a cheaper alternative to ride on SembMarine's newbuild orders. Profit from utilities may expand in coming quarters following recent acqn of water company Cascal. RBS has Buy call with $4.70 target.