SG Strategy: CS has strategy report. Note that Sembcorp Industries’ P/B now close to 2008-09 lows, having dropped to 1.48x vs a low of 1.38x during 2008-09 lows. With SCI P/B just 7% above 2008-09 lows, SCI joins ComfortDelgro, SMRT, Olam, SingTel and Capitaland as stocks with a P/B close to 2008-09 lows.
Strategy is to buy stocks with a P/B close to 2008-09 lows, 2 are now cyclicals (Olam, SCI), 1 real estate (Capitaland) and 3 are defensives (SingTel, ComfortDelgro and SMRT). House maintain O/p for SCI, TP $4.90, noting that SCI’s Utilities stub is trading at a P/E of 6.3x, close to its historical low.
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