Title: Comprehensive Analysis of Top Renewable Energy and Utility Companies Across Asia-Pacific
Conglomerate │ Singapore Sembcorp Industries │ March 14, 2025

Sembcorp Industries: More than Enough Gas to Power its Growth

Sembcorp Industries (SCI) has a robust gas portfolio, with a total of around 2.8 million tonnes per annum (mtpa) of piped natural gas (PNG) and liquefied natural gas (LNG) combined. This gas supply is more than sufficient to power its current 1,219 MW installed gas-fired capacity and the upcoming 600 MW hydrogen power plant, as well as for potential sales.

The termination of a gas import contract for 111 BBTU/d (equivalent to 0.6 mtpa) is seen to have minimal impact, as SCI’s overall gas portfolio can still meet its power generation needs. The company’s guidance of a 5% CAGR in profits for its gas and related services business by 2028 remains unaffected.

Robust Renewable Energy Portfolio Expansion

SCI has been actively expanding its renewable energy (RE) portfolio, with plans to reach 25 GW of gross installed capacity by 2028, up from the current 13.1 GW. The company’s RE assets are diversified across China, India, Singapore, Vietnam, Indonesia, Oman, and the UK.

China remains the largest contributor, accounting for 64% of the total RE portfolio as of FY24, followed by India at 22%. SCI is also growing its presence in other key markets like India, Singapore, and Vietnam.

Earnings Growth and Valuation

SCI is expected to deliver double-digit earnings growth in FY25F, driven by capacity expansion and the commencement of LNG supply. The company’s core EPS is forecast to grow by 12.4% in FY25F and 4.7% in FY26F.

The research report maintains an “Add” rating on SCI, with a revised target price of S\$7.81, up from the previous S\$7.32. This target price implies an upside of 31% from the current share price. The valuation is based on 11.7x P/E in FY26F, in line with regional peers.

Key Risks and Catalysts

Potential catalysts for SCI include stronger-than-expected earnings growth from capacity expansion, accelerated pace of acquisitions, and securing of RE contracts to reach its 2028 target. Key risks include unfavourable regulatory changes and prolonged unplanned plant shutdowns.

Peer Comparison

SCI’s valuation is in line with regional peers in the renewable energy and utility sectors. The report provides a comprehensive comparison of key financial metrics and ratings for companies across India, Malaysia, Thailand, China, and the Philippines.

ESG Considerations

SCI has made significant progress in its ESG initiatives, including achieving its 2025 emissions intensity target and committing to halve its emissions intensity by 2028. The company’s strong focus on renewable energy growth is expected to drive further improvements in its ESG profile, potentially leading to premium valuations compared to its peers.

Conglomerate │ Singapore Sembcorp Industries │ March 14, 2025

Perusahaan Gas Negara: Stable Growth Outlook

Perusahaan Gas Negara (PGAS IJ), the state-owned gas company in Indonesia, is rated “Add” by the research report. The company is expected to deliver stable earnings growth, with a 3-year EPS CAGR of 10.8% and a return on equity of 12.4% in FY26F.

PGAS IJ’s valuation is attractive, trading at 12.4x P/E and offering a dividend yield of 11.6% in FY26F. The research report highlights the company’s position as a key player in Indonesia’s gas industry and its potential to benefit from the country’s growing energy demand.

Indian Utility Giants: Navigating Challenges

The research report provides an analysis of several major Indian utility companies, including NTPC Ltd (NTPC IN), Power Grid Corp of India Ltd (PWGR IN), Tata Power Co Ltd (TPWR IN), GAIL India Ltd (GAIL IN), and Petronet LNG Ltd (PLNG IN).

These companies are facing headwinds, with a 3-year EPS CAGR ranging from -33.6% to -15.9%. However, the report highlights their strong market positions, diversified business models, and potential to benefit from India’s growing energy needs in the long term.

The research report maintains a “Neutral” stance on the Indian utility sector, noting the challenges posed by regulatory uncertainties and the need for these companies to adapt to the changing energy landscape.

Malaysian Utilities: Stable Performers

The report examines two prominent Malaysian utility companies: Gas Malaysia Berhad (GMB MK) and Malakoff Corporation (MLK MK).

Gas Malaysia Berhad is rated “Hold” and is expected to deliver stable earnings, with a return on equity of 23.5% in FY26F. Malakoff Corporation, on the other hand, is rated “Add” and is seen to benefit from its diversified portfolio of power generation assets.

The report also analyzes Petronas Gas (PTG MK) and Tenaga Nasional (TNB MK), two other prominent players in the Malaysian utility sector, highlighting their strong market positions and growth prospects.

Thai Renewable Energy Landscape

The research report examines several Thai renewable energy companies, including Sermsang Power Corporation (SSP TB), B Grimm Power PCL (BGRIM TB), Banpu Power PCL (BPP TB), and BCPG PCL (BCPG TB).

These companies are expected to benefit from Thailand’s growing demand for renewable energy, with B Grimm Power and Banpu Power projected to deliver strong earnings growth over the next few years.

The report also covers other notable players in the Thai renewable energy space, such as Energy Absolute PCL (EA TB), Global Power Synergy PCL (GPSC TB), and Gulf Energy Development PCL (GULF TB).

Philippine Utilities: Resilient Performers

The research report analyzes two key players in the Philippine utility sector: ACEN Corp (ACEN PM) and Aboitiz Power Corporation (AP PM).

ACEN Corp is expected to benefit from the Philippines’ growing renewable energy demand, while Aboitiz Power Corporation is seen as a resilient performer with a diversified portfolio of power generation assets.

The report also covers Manila Electric Co (MER PM), a leading electricity distribution company in the Philippines, highlighting its stable earnings and growth potential.

Chinese Renewable Energy Giants

The research report examines several prominent Chinese renewable energy companies, including Beijing Jingneng Clean Energy (579 HK), China Datang Corp Renewable Power (1798 HK), China Longyuan Power Group Corp (916 HK), and CGN Power Co Ltd (1816 HK).

These companies are expected to play a crucial role in China’s renewable energy transition, with strong growth prospects driven by the country’s ambitious carbon reduction targets.

The report also covers China Gas Holdings Ltd (384 HK) and China Resources Power Holdings (836 HK), two diversified utility companies with exposure to the renewable energy sector.