Sembcorp Industries (SCI SP)
From Brown To Green – A Long-term Strategic Transformation
SCI’s Investor Day profiled a long-expected move towards a greener future, focusing its business growth on renewable energy and sustainable urban development as well as a pledge to deliver net zero carbon emissions by 2050. While the results will take time, we view SCI’s move positively and it could lead to the market applying an “ESG premium” to the stock. Maintain BUY with a higher target price of S$2.59.