“We continue to like Sembcorp Marine given its strong potential for new order wins in 2023, especially for production assets. In the longer term, PSA’s move to Tuas will have positive spillover effects on Sembcorp Marine’s repairs and upgrades segment,” he adds.
Analysts from UOB Kay Hian Research and CGS-CIMB Research have maintained their “buy” and “add” ratings for Sembcorp Marine with unchanged target prices (TPs) of 15.6 and 19 cents respectively, following a visit to the company’s Tuas Boulevard Yard.
In his report dated Nov 24, UOB Kay Hian’s Adrian Loh says the yard visit “reinforced” his positive view on Sembcorp Marine for 2023. “It was evident from a bird’s eye tour of Sembcorp Marine’s yard that its integrated design allows the company to carry out projects more efficiently and thus save on time and cost. This was also helped by the implementation of solar and robotic initiatives,” says Loh.
