Sembcorp Industries

Sembcorp Industries (SCI): CIMB maintains Add rating and raised TP to $6.14 (from $5.99), citing that India could help to plug the gap in Singapore as a result of lower contribution from vesting contracts in FY15-16. SCI’s increased stake from 49% to 65% in its first Indian power plant (TPCIL) suggests management’s confidence in its full commissioning by 2Q15, potentially contributing 7-13% to SCI’s Utilities earnings in FY15-16. House reckons Singapore pool prices have bottomed out, with most of the new capacities already commissioned in 1H14.