Sembcorp Industries is poised to post earnings CAGR of over 10% through 2028, as its three key segments enter expansion mode, DBS Group Research's Pei Hwa Ho says in a research report.
Its renewables segment may deliver profit CAGR of over 20%, supported by its project pipeline which is set to increase attributable installed capacity by around 50% over next 2-3 years, the analyst says.
Its gas-related services segment's earnings could increase, partly thanks to Singapore's healthy power market, the analyst says.
Its integrated urban solutions segment's profit may alsoo rise, driven by potentially rapid growth in demand for industrial parks in Asean.
DBS raises the stock's target price to S$7.38 from S$7.35 and maintains a buy rating.