Out of the 62MW under development, 50MW has been completed and commercial operational dates (CODs) are expected by 1QFY2023 and range from 2015 to 2022 with an average asset age of five years, note the analysts from CGS-CIMB, Lim Siew Khee and Izabella Tan. The assets are contracted to the grid for one year or three to five years, pegged to coal on adjustable grid tariffs, with around 60% of contracts eligible for government subsidies.
Analysts from CGS-CIMB Research and PhillipCapital have maintained their “add” and “buy” ratings for Sembcorp Industries with unchanged target prices (TPs) of $4.78 and $3.68 respectively.
On Nov 17, Sembcorp announced that it was acquiring 830 megawatts (MW) of Chinese solar and wind assets, including 62MW under development, in Hunan and Guizhou by 1HFY2023 for around $204 million. This comes off the back of Sembcorp’s acquisition of a 45.3% interest in Xingling New Energy from Wuling Power, an affiliated company of State Power Investment Corporation Limited (SPIC).
