Sembcorp Industries

Sembcorp Industries: Solid waste management subsidiary, SembWaste, has been awarded a contract worth a total of $299m by the National Environment Agency to provide refuse collection and recycling services to the City-Punggol sector of Singapore. The City-Punggol sector will be formed by the merging of two current sectors served by SembWaste since 2006 under existing contracts: City and the Hougang-Punggol sectors. Sembcorp’s contract for the newly-merged sector will take effect upon the expiry of its existing contracts for City and Hougang-Punggol on 1 Oct 2013 and 1 Mar 2014 respectively. The new contract will last until 30 Jun 2021. At its last closing price of $4.84, Sembcorp Industries trades at 11.5x trailing P/E and 1.8x P/B.