Transition to pan-Asian sustainable solutions leader


 Sustainable solutions portfolio to be 70% of profits by 2025, up from current 40%. Urban business land sales to triple to 500 hectares by then.

 ROE of 10% and gross debt to equity at 1.3x by 2025 from 3.2% and 2.3x respectively.

 We raise our target price to S$2.07 from S$1.77 as we peg SCI to 1.0x FY21 P/B, up from 0.85x previously, as we believe the detailed layout of its five year plan will drive a re-rating of the stock. However, as most positives have been priced in, and its ambition of transforming its portfolio is now new, we downgrade from ACCUMULATE to NEUTRAL.