To support its own share price, Sembcorp, since late August, when many investors were selling the shares after the 1HFY2025 results, has bought back $12.5 million worth of shares at an average of $6.11 each. Before the drop following the results, Sembcorp was trading at as high as $7.93.
Adrian Loh of UOB Kay Hian has maintained his bullish view on Sembcorp Industries. He recognises that the utilities company's weaker-than-expected 1HFY2025 earnings is still "at the top of investors' minds". Nonetheless, underpinned by demand for energy from data centres and high-tech manufacturing, the company's medium to longer-term growth remains intact.
Loh, in his Oct 24 note, has kept his "buy" call and $7.90 target price, which is based on an earnings valuation multiple of 12.8x, which is 1.5 sd above Sembcorp's 2018 - 2025 average of 8.5x.
