Renewables proxy in Singapore

■ SCI aims to grow renewable energy profit by 30% (5-year CAGR) by 2025F
from S$46m in FY2020. ROE target: 10%. No more investment in coal power.
■ The group targets to grow its renewable energy installed capacity to 10GW
from current 2.6GW. The target is higher than Philippines peer ACEN (5GW).
■ We are positive on SCI’s renewables commitment, but execution is key.
Assuming a blue-sky scenario, SCI’s profit could reach S$397m by FY25F.
■ We now value SCI based on 15x FY22F P/E, in line with Asian peers, to
derive a higher TP of S$2.43. Reiterate Add.