Sembcorp Industries' earnings are expected to be supported by its expansion in renewable capacity and incremental stake in Senoko Energy, OCBC Investment Research's research team writes in a note.
The industrial conglomerate plans to continue growing its renewable energy portfolio and efforts to lower its carbon intensity, OCBC says.
The higher stake in Senoko Energy also reinforces Sembcorp Industries' commitment in supporting Singapore's energy security and ensuring the delivery of reliable energy solutions, OCBC says.
OCBC has a buy rating on the stock and raises its fair value estimate to S$8.45 from S$7.20.