SG: MARKET PULSE: Sembcorp Industries (5 Sep 2013)

Publish date: Thu, 05 Sep 2013, 10:45 AM

MARKET PULSE: Sembcorp Industries
5 Sep 2013
KEY IDEA

Sembcorp Industries: Growing wastewater business in China

Summary: Sembcorp Industries (SCI) announced last week that it will expand its water business in China's Liaoning Province with two new wastewater treatment projects in industrial parks in Panjin City. We see the initial phases of these projects as incremental expansions in China, adding about 10% to the group's total industrial water capacity in the country. The group's utilities business in China has seen good growth over the years, with net profit increasing from S$6m in 2009 to a forecasted S$50m this year. With the expertise to provide utilities like energy, water and wastewater treatment which will be in demand due to China's growth, we are optimistic on the long-term prospects of China as a key market for the group. Moreover, SCI has expertise on sustainable living with a focus on environmental protection, which should be in demand in China due to the country's environmental problems. Maintain BUY with S$6.48 fair value estimate. (Low Pei Han)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.


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Labels: Hiap HoeIndofood AgriSembcorp Ind

Discussions
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alex90gray

The research firm said the Sembcorp Industries' (SCI) utilities business in China has seen good growth over the years, with net profit increasing from S$6m in 2009 to S$30m in 2012. This led to a forecast of 67% rise in profits for 2013: "We are expecting net profit of about S$50m this year; 1H13 net profit has already reached S$32.7m." is it being continue..see more @ http://goo.gl/chE0k2

2013-09-05 11:43

alex90gray

Update on supports and resistances.
Short Term View
(Rise, Limited Rise, Consolidation, Limited Decline, Decline) Limited Rise
Change In Short Term View None
Medium Term View
(Bullish, Range, Bearish) Range
Change In Medium Term View None

Pivot: 4.15

Our preference: Long positions above 4.15 with targets @ 4.57 & 4.7 in extension.

Alternative scenario: Below 4.15 look for further downside with 4 & 3.8 as targets.

Comment: the RSI broke above a declining trend line.

Key levels
4.85
4.7
4.57
4.4 last
4.15
4
3.8

2013-09-10 19:08

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