SCI announced on Dec 11 plans to 100% of Alinta shares from Chow Tai Fook Enterprises, which has owned Alinta since 2017. The deal will be fully funded by cash and a bridging loan until long-term financing is in place
CGS International (CGSI) analysts Lim Siew Khee and Meghana Kande are maintaining their ‘add’ call for Sembcorp Industries (SCI), albeit with a reduced TP of $7.77 from $8.02, after the company announced its acquisition of Australia’s Alinta Energy for A$5.6 billion ($4.8 billion).
They believe that with SCI’s renewable energy expansion plan and “undemanding” valuation of around 9.5 times forecasted 2026 P/E, SCI is underpriced relative to projected 13 times P/E value.
