Brought into Sembcorp Industries today in view of the huge discounts. I have many choices, but decided to went with this due to several reasons:
- Its Utilities segment (i.e Power and Water) made up nearly 60% of the stock, which I considered a very defensive area. People will always need power and water. It makes me feel safer compare to going full O&G.
- Strong pipelines in the works, increasing power and water capacity provision to China and India.
- Extremely solid balance sheet, blue chip with over 700million net current assets, over 2 billion in cash.
- Going by conservative estimates for the next half of the year - 40cEPS and 15c DPS - it gives a P/E of 12 and dividend yield of 3%. I think that is quite cheap for such a solid stock. Intending to hold it for the long term :)
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Don't think I'll be adding anymore in the meantime. Times are uncertain and I think it's better to hold more cash...
