Comprehensive Financial Analysis of Key Companies

Report by Lim & Tan Securities | Date: 18 December 2024

Sembcorp Industries: A Solar Pioneer in India

Sembcorp Industries (SCI) is making significant strides in renewable energy with the recent award of a 150MW solar photovoltaic project combined with a 300MWh Battery Energy Storage System (BESS) from the Solar Energy Corporation of India Ltd (SECI). This initiative is part of a larger bid for 2GW inter-state transmission system (ISTS)-connected solar power projects featuring 4GWh of BESS.

The project is set to provide on-demand power to support daily peak electricity over a 25-year tenure. The project’s completion is anticipated within 24 months from the date of signing the power purchase agreement (PPA). This venture marks Sembcorp’s first solar and BESS hybrid project in India, increasing its gross renewables capacity in the country to nearly 6GW. Globally, Sembcorp’s renewables capacity now stands at 16.5GW.

Despite this groundbreaking initiative, the project is not expected to have a material impact on Sembcorp’s earnings per share or net tangible assets per share for the fiscal year ending December 31, 2024. With a market capitalization of S\$9.6 billion, SCI trades at 10.1x forward PE with a 1.9x book value and a 2.6% dividend yield. Analysts maintain an “Accumulate” rating on SCI, with a consensus target price of \$6.84, implying a potential upside of 27% from its current share price.

CapitaLand Ascendas REIT: Expanding US Footprint

CapitaLand Ascendas REIT (CLAR) is enhancing its logistics portfolio in the United States with the acquisition of the DHL Indianapolis Logistics Center for S\$150.3 million (US\$115.8 million). Located in Whiteland, Indiana, the property is a modern Class A logistics facility, strategically positioned to serve as a regional hub for Indianapolis and the Midwest markets.

This acquisition will increase CLAR’s US logistics portfolio by 35.3% to S\$587.5 million, with a total gross floor area of 5.1 million square feet. The property is fully occupied by DHL USA under a long-term lease until December 2035, with options for renewal. This acquisition is expected to provide income stability and enhance the resilience of CLAR’s portfolio.

CLAR’s first year net property income yield from the acquisition is approximately 7.6% pre-transaction costs and 7.4% post-transaction costs. The acquisition is forecasted to result in a DPU accretion of 0.1%. With a market capitalization of S\$11.2 billion, CLAR trades at 1.1x P/B with a 5.8% dividend yield. Analysts recommend an “Accumulate” rating for CLAR, noting its decent yield and potential upside of 25% to the consensus target price of \$3.19.

Wilmar International Ltd: Strategic Acquisitions

Wilmar International Ltd has witnessed notable acquisition activity with Kuok Khoon Hong acquiring 1,250,000 shares. This move aligns with Wilmar’s strategic growth and consolidation efforts. The transacted price stands at S\$3.03, with the new balance stake reaching 14.31%.

United Hampshire US REIT: Steady Investments

United Hampshire US REIT saw MCB Asia Investor LLC acquiring 25,200 shares at a transacted price of S\$0.48, maintaining a stable investment trajectory with a 5.002% stake.

ABR Holdings Ltd: Strong Stakeholder Support

ABR Holdings Ltd experienced an acquisition by Ang Yee Lim, who purchased 87,400 shares at S\$0.41, reflecting a robust 53.691% stake in the company.

Stamford Land Corp Ltd: Continued Confidence

Ow Chio Kiat’s acquisition of 110,000 shares at S\$0.37 in Stamford Land Corp Ltd underscores continued confidence in the company, maintaining a 46.08% stake.

Singapore Shipping Corp Ltd: Strategic Growth

Singapore Shipping Corp Ltd saw Ow Chio Kiat acquiring 100,000 shares at S\$0.275, resulting in a 43.36% stake, indicative of strategic growth initiatives.

Indofood Agri Resources Ltd: Dominant Market Presence

PT ISM’s acquisition of 405,100 shares in Indofood Agri Resources Ltd at S\$0.32 further solidifies its dominant market presence with an 85.15% stake.

Advanced Systems Automation: Expansion Efforts

Koh Yew Choo’s acquisition of 2,328,600 shares at S\$0.0325 in Advanced Systems Automation reflects expansion efforts with a 12.1% stake.

XMH Holdings: Strengthened Position

Tan Tin Yeow’s acquisition of 92,700 shares at S\$0.560 in XMH Holdings strengthens his position with a 63.67% stake.

Conclusion

The detailed analysis of these companies highlights strategic growth, acquisitions, and expansions as key themes. Investors are advised to consider these insights for informed decision-making in the financial markets.