Sembcorp Industries - OCBC Investment 2017-07-12: Moves Into The Emerging Solar Distributed Energy Market

SEMBCORP INDUSTRIES LTD U96.SI

Sembcorp Industries - Moves Into The Emerging Solar Distributed Energy Market

Sembcorp Industries (SCI) announced that it has added two operating rooftop solar facilities in Singapore to its global renewable energy portfolio.
Through its wholly-owned subsidiary Sembcorp Utilities, SCI completed its purchase of 100% of Solar C&I Holdings (Solar C&I) for S$3.3m from REC Solar.

Solar C&I owns grid-tied rooftop solar assets at the premises of Asia Pacific Breweries Singapore and Stolthaven Singapore. Already in operation, these assets have a combined capacity of 2.3MW.
Though the acquisition consideration may not be as substantial as its usual power projects, it is significant as it reinforces the group’s commitment to further developing its renewable energy portfolio in Singapore, as the power market here moves towards full retail competition.
Recall that SCI also acquired 49% of Changi Mega Solar, the developer of a 3.6MW grid-tied solar energy system on the rooftop of SATS Airfreight Terminals 5 and 6 in Nov last year.
Maintain BUY with S$3.48 fair value estimate on SCI.

Low Pei Han CFA OCBC Investment | http://www.ocbcresearch.com/ 2017-07-12

OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 3.480 Same 3.480