Singapore’s Star Stock Needs Renewables Push to Keep Going
- Shares of Sembcorp Industries have gained 49% this year
- Co. expects better results on higher traditional energy prices
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This year’s surge in energy prices has taken Sembcorp Industries Ltd.’s shares close to their peak, but any further outperformance hinges on its push for a clean-energy portfolio.
The Singapore-listed utilities company has jumped 49% this year, making it the top performer on the Straits Times Index. While the stock is expected to gain 15% over the next year, that’s still below the benchmark’s forecast 18%, according to analysts. The divestment of its coal plants in India and more deals related to the solar and wind sectors are needed to maintain momentum, analysts say.