Excerpts from UOBKayHian report

Sembcorp Industries (SGX: U96)

Sembcorp Industries (SCI) announced the acquisition of 390MW of net solar assets in China and a portfolio of 583MW of solar and wind assets in India. On a gross installed capacity basis, this would increase the company’s capacity from 7.2GW to 8.5GW which is not far from its 2025 target of 10 GW. SCI disclosed that these assets were bought at “low teens PE multiples” which we view as fair. Maintain BUY. Target price: S$4.10.

Expanding its solar capacity in China

On 11 Nov 22, SCI announced that its 49%-owned JV would acquire 795MW of operational solar assets in Hebei, China, for a total consideration of Rmb1.163b (or S$225m). This comprises an initial equity consideration of Rmb15m (S$3m) followed by a subsequent capital injection of Rmb1.148b (S$222m). This acquisition will be funded by internal cash resources and external borrowings with...