In six trading days, Sembcorp Industries (SCI) has fallen 23% from $7.80 on 7 Aug 2025 to close $6.01 on 18 Aug 2025. After taking into account of $0.09 dividends which was ex on 15 Aug, this decline still amounts to an approximate hefty 22% drop, shaving off S$3.0b of its market capitalisation.
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1HFY25 core profit was S$491m, vs S$489m in 1HFY24. Granted that it has missed consensus estimates, has this selling been overly excessive?
Brief points on SCI
a) Analysts remain largely positive
< p style=”text-align: justify;”>Based on Figure 1 below, average analyst target price is $7.43, representing a 24% potential capital upside. Consensus estimates a FY25F dividend yield of around 4.2% with total potential return of around 28%. It is also noteworthy that the lowest and highest target prices for SCI are $6.40 and 8.02 respectively. [In my attempt to present the most…