Monday, February 28, 2011


SembCorpInd: FY2010 results in line with consensus. FY10 net profit at $760.8m +11.4%yoy before including an exceptional 3Q gain of $32.0m related to disputed forex transactions. Full yr rev was $8.8b, -8.4%yoy and net profit reported was $792.9m +16.1%yoy. 4Q10 rev at $2.1b -14.4%yoy and net profit of $228.7m -11.7%yoy. FY10 increase came from marine segment +12.7%yoy excluding one-offs, making up 64.8% of net profit…

Utilities business was stable, a 2.0%yoy increase despite poor performance from UK business and Industrial Park segment was up 30.1% yoy on lower base and good take-up of property projects. Co’s current marine order book is approx $4.8b and stretches to 2Q2013....

Other businesses are expected to have a steady performance. Dividend of 17c declared translates to yield of 3.5%. BNP maintains Buy with TP$5.90 and GS maintains Sell with TP$4.70. BNP is of the view that Middle East exposure in Salalah, Oman and Fujairah, UAE as well as North Africa may affect near-term share price but stock is fundamentally sound. Co trades at 11.0x P/E at historical avg of 11.0x

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