Ho says Sembcorp offers a unique value proposition as a proxy to ride the cyclical O&M upturn and is supported by a defensive utilities business with India operations recording all-time high profits in 2Q18.
SINGAPORE (Aug 6): DBS Group Research is still clinging on to the hope of a merger between Keppel’s offshore & marine arm and Sembcorp Marine despite the spinoff not happening in last year’s strategy review.
In a Monday report, analyst Ho Pei Hwa says the potential spinoff of its marine arm could re-rate Sembcorp’s undervalued utilities business that is overshadowed by the cyclical marine business.
