Should I buy Sembcorp stock in 2025?
Is it the right time to buy Sembcorp?
Sembcorp Industries (SGX: U96) continues to attract attention on the Singapore Exchange, currently trading at about SGD 7.35 with a robust average daily volume of over 3.3 million shares. The past year has seen an impressive surge of over 50%, underscoring strong investor appetite and confidence in the company’s direction. Recent highlights include a successful SGD 300 million bond issue, a first-of-its-kind round-the-clock renewable energy project in India, and strategic alliances aimed at expanding Sembcorp’s regional leadership in green energy and sustainable urban development. While revenue in FY2024 softened marginally, earnings and margins remained solid and met market expectations. The stock’s upward momentum is further backed by favorable technical indicators and a healthy dividend yield near 5%. Market sentiment remains optimistic, reflecting recognition of Sembcorp’s ability to scale its renewable portfolio and execute long-term power agreements. In today’s climate of energy transition, its focus on renewables and integrated solutions resonates strongly throughout Southeast Asia and India. More than 12 local and global banks are aligned on a consensus target of SGD 9.56 per share, suggesting that Sembcorp presents a compelling long-term growth narrative for retail investors in Singapore.
- ✅Strong expansion in renewables with a leading 6.5GW capacity pipeline in India.
- ✅Attractive dividend yield of 4.96%, outperforming sector norms.
- ✅Dominant market position and large-scale long-term power contracts.
- ✅Strategic partnerships in green hydrogen and battery storage.
- ✅Consistent revenue from urban development and integrated energy solutions.
- ❌High gearing with a debt/equity ratio over 166% may limit flexibility.
- ❌Geographic concentration increases exposure to regional regulatory risks.
- ✅Strong expansion in renewables with a leading 6.5GW capacity pipeline in India.
- ✅Attractive dividend yield of 4.96%, outperforming sector norms.
- ✅Dominant market position and large-scale long-term power contracts.
- ✅Strategic partnerships in green hydrogen and battery storage.
- ✅Consistent revenue from urban development and integrated energy solutions.
Is it the right time to buy Sembcorp?
- ✅Strong expansion in renewables with a leading 6.5GW capacity pipeline in India.
- ✅Attractive dividend yield of 4.96%, outperforming sector norms.
- ✅Dominant market position and large-scale long-term power contracts.
- ✅Strategic partnerships in green hydrogen and battery storage.
- ✅Consistent revenue from urban development and integrated energy solutions.
- ❌High gearing with a debt/equity ratio over 166% may limit flexibility.
- ❌Geographic concentration increases exposure to regional regulatory risks.
- ✅Strong expansion in renewables with a leading 6.5GW capacity pipeline in India.
- ✅Attractive dividend yield of 4.96%, outperforming sector norms.
- ✅Dominant market position and large-scale long-term power contracts.
- ✅Strategic partnerships in green hydrogen and battery storage.
- ✅Consistent revenue from urban development and integrated energy solutions.
- What is Sembcorp?
- The Sembcorp stock price
- Our full analysis of Sembcorp stock
- How to buy Sembcorp stock in Singapore
- 7 Tips for Buying Sembcorp Stock
- The latest news about Sembcorp
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking Sembcorp's performance for over three years. Every month, hundreds of thousands of users in Singapore trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Sembcorp.
What is Sembcorp?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | Singapore | Singapore-based, benefitting from stable policies and proximity to growth markets. |
💼 Market | Singapore Exchange (SGX) | Listed on SGX, ensuring liquidity and strong investor oversight. |
🏛️ ISIN code | SG1R50925390 | Unique identifier, supporting international trading and investment access. |
👤 CEO | Wong Kim Yin | CEO since July 2020, driving strategic energy and renewables expansion. |
🏢 Market cap | SGD 13.08 billion | Large cap, indicating scale, investor confidence, and market relevance. |
📈 Revenue | SGD 6.42 billion (2024) | Declined by 8.8% year-on-year; reflects energy headwinds but remains substantial. |
💹 EBITDA | SGD 2.07 billion (2024) | Healthy operational profit shows strong core business and cash generation. |
📊 P/E Ratio (Price/Earnings) | 13.12 | Moderate valuation for the sector, suggests room for growth but watch for earnings risks. |
The Sembcorp stock price
The price of Sembcorp stock is rising this week. The current stock price stands at SGD 7.35, up 2.94% in the last 24 hours and 7.30% over the past week. Sembcorp's market capitalisation has reached SGD 13.08 billion, with an average 3-month trading volume of 3.3 million shares. The P/E ratio is 13.12, dividend yield is 4.96%, and the stock’s beta of 0.46 points to relatively low volatility. Investors can expect stable performance, underpinned by strong fundamentals and limited price swings.
Our full analysis of Sembcorp stock
We have conducted a comprehensive review of Sembcorp’s latest financial results and tracked its stock performance over the past three years. By integrating a diverse range of sources—including financial indicators, technical signals, market data, and a benchmark of global competitors—our proprietary models offer a holistic view of Sembcorp’s prospects. So, why might Sembcorp stock once again become a strategic entry point into the renewables and infrastructure sector in 2025?
Recent performance and market context
Sembcorp’s stock has staged a remarkable rally in 2025, most recently closing at SGD 7.35, up 2.94% intraday and gaining 7.3% over the past week. Year-to-date, the stock has delivered a stellar 54.09% yearly increase, continuing its robust outperformance streak over three consecutive years. The holding of a market capitalization now north of SGD 13 billion affirms Sembcorp’s importance in Singapore’s corporate landscape. Multiple positive catalysts have underpinned these results. Highlights from the past quarter include the company’s successful SGD 300 million bond issuance at attractive terms, a first-in-region 24/7 renewables contract win in India, and new strategic partnerships in both the chemicals and green hydrogen markets. Sector-wide, the appetite for high-quality, diversified Asian energy infrastructure assets has rarely been stronger, as global investors seek exposure to decarbonisation solutions and long-term cash flows.
Technical analysis
Technical indicators for Sembcorp presently point toward a sustained bullish phase. The relative strength index (RSI) currently stands at 70.49, indicating strong directional momentum but just entering moderate overbought territory—a textbook sign of high demand rather than instability. The moving average convergence divergence (MACD) remains positive at 0.13, flagging continued buy-side activity. Sembcorp’s share price is trading well above all major moving averages: SGD 6.95 (20-day), SGD 6.74 (50-day), SGD 6.43 (100-day), and SGD 5.91 (200-day), with every signal confirming a multi-month uptrend. Immediate support is seen around SGD 6.80–7.00, significantly above previous consolidation areas. The recent breakout past resistance at SGD 7.40–7.50 will be closely watched, but the short- and medium-term structure remains clearly constructive.
Fundamental analysis
From a fundamental perspective, Sembcorp continues to impress. Despite top-line revenues of SGD 6.42 billion being slightly lower year-on-year due to strategic portfolio repositioning (-8.8% versus 2023), profitability has consistently strengthened. The group generated a net profit of SGD 1.02 billion and EBITDA of SGD 2.07 billion in FY2024, bolstered by disciplined cost controls and mix optimization. Robust earnings per share of SGD 0.56 and a dividend yield approaching 5% underscore the company’s commitment to shareholder returns. The stock’s price-to-earnings (P/E) ratio of 13.12 reflects a substantial valuation discount to both Singapore’s industrial average and global renewables leaders. This apparent mispricing, coupled with Sembcorp’s long-term secured power purchase contracts and dominant standing in Asian renewables, presents a compelling investment argument. Structurally, Sembcorp’s brand strength, expertise in urban infrastructure, and capacity to deliver on large-scale innovation—from battery storage to green hydrogen—position it as a technology-forward leader in the energy transition.
Volume and liquidity
Trading volumes in Sembcorp have remained notably buoyant, with a three-month average of approximately 3.3 million shares exchanged daily. Such sustained liquidity signals ongoing institutional confidence and provides a favorable environment for new investors to establish positions without significant price impact. The public float is substantial and ensures continued dynamic valuation, while also supporting technical reliability for trend-following strategies.
Catalysts and positive outlook
Sembcorp’s visibility on powerful catalysts for further growth in 2025 and beyond is stronger than ever. Recent achievements include landmark battery storage pilots and long-term energy offtake contracts across Asia, supplementing expansion efforts in renewable capacity that now exceed 6.5GW in India alone. The company’s ongoing entry into international green hydrogen and low-carbon chemicals, such as via its high-profile partnership with BPCL, confirms a forward-looking strategy highly attuned to global decarbonisation trends. Furthermore, Sembcorp is an active beneficiary of Singapore’s supportive regulatory environment and regional fiscal incentives for infrastructure. ESG funds and institutional investors continue to raise their allocations to businesses that combine resilience, scale, and innovation—qualities that Sembcorp amply demonstrates. Key industry trends, including Asia’s rapid move to electrification, rising demand for sustainable infrastructure, and wide-reaching net-zero policies, all provide a constructive backdrop for continued share appreciation.
Investment strategies
- Short-term traders can consider positions at or just above the nearest trendline support (SGD 6.80–7.00), targeting momentum and potential new breakout attempts above SGD 7.50.
- Medium-term investors may view any brief pullbacks or consolidations as opportunities to accumulate, given the attractive forward P/E and generous dividend that buffer downside risk.
- Long-term holders are well placed to benefit from Sembcorp’s multi-year transformation into a regional renewables leader, with growing cash flows from contracted assets and a proven ability to unlock new growth areas.
In all horizons, the alignment of macro, sector, and company-specific drivers appears highly favorable. The current technical structure suggests the early stages of a fresh bullish phase, while the discount to peer valuations implies scope for multiple expansion as new earnings streams are realized.
Is it the right time to buy Sembcorp?
A confluence of investment merits places Sembcorp squarely on the radar of growth-oriented and income-seeking investors alike. The group’s resilient financial performance, increasing profitability and dividends, successful pivot to decarbonisation, and multiple structural catalysts (from green hydrogen leadership to robust Asian market access) underscore its potential to generate sustainable returns through all cycles. Technical and liquidity signals further strengthen the case for renewed interest. In conclusion, Sembcorp seems to represent an excellent opportunity at current levels, with fundamentals and momentum both justifying a positive investment outlook. For investors looking to position for the next phase of Asia’s green transition, Sembcorp appears poised to deliver strong performance and consistently reward those who participate in its growth story.
How to buy Sembcorp stock in Singapore
Investing in Sembcorp stock is a straightforward and secure process when you use a regulated online broker in Singapore. You can choose between buying shares outright (spot buying) or trading Contracts for Difference (CFDs), depending on your goals, risk appetite, and trading style. Both options are easily accessible through digital platforms with local currency support. If you’re unsure which approach is best, you’ll find a detailed broker comparison further down the page to help you decide.
Spot buying
With cash (spot) buying, you become a direct shareholder of Sembcorp, benefiting from share price movements and dividends. Most Singapore brokers now charge a fixed commission per order, usually around SGD 5–15 per trade.
Sembcorp Share Investment: Gain Scenario
If the Sembcorp share price is SGD 7.35, you can buy around 135 shares with a SGD 1,000 stake, including a brokerage fee of around SGD 5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth SGD 1,100.
Result: +SGD 100 gross gain, i.e. +10% on your investment.
Trading via CFD
Trading Sembcorp through CFDs allows you to speculate on price movements without owning the actual shares. CFD brokers charge a spread on each transaction and, if positions are held overnight, a daily financing fee. Leverage is available, increasing both potential gains and risks.
CFD Position: Gain Scenario Example
You open a CFD position on Sembcorp shares with a SGD 1,000 stake and 5x leverage.
This gives you a market exposure of SGD 5,000.
Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +SGD 400 gain, on a bet of SGD 1,000 (excluding fees).
Final advice
Before you invest, compare brokerage fees, platforms, and trading conditions to ensure you get the best value. Whether you choose spot buying or CFD trading should align with your investment goals and risk tolerance—find our full broker comparison further down the page.
Check out the best brokers in Singapore!Compare brokers7 Tips for Buying Sembcorp Stock
📊 Step | 📝 Specific tip for Sembcorp |
---|---|
Analyze the market | Study the regional growth in renewables and infrastructure—core areas driving Sembcorp’s transformation in Asia. |
Choose the right trading platform | Use a trusted SGX brokerage with competitive SGD commissions to invest efficiently in Sembcorp. |
Define your investment budget | Set your budget based on risk appetite; consider Sembcorp’s steady dividends and diversify across sectors. |
Choose a strategy (short or long term) | Consider a long-term approach to benefit from Sembcorp’s renewable energy expansion and recurring contract income. |
Monitor news and financial results | Track Sembcorp’s quarterly earnings, new project announcements, and dividend news, which can move the stock price. |
Use risk management tools | Apply stop-loss and position sizing to manage your Sembcorp holdings, given moderate volatility and external risks. |
Sell at the right time | Plan to lock in gains if Sembcorp nears major resistance levels or after positive project milestones are recognized. |
The latest news about Sembcorp
Sembcorp stock jumps 7.3% in the last week, outperforming the broader SGX indices. The company’s shares reached SGD 7.35, reflecting investor confidence following recent strategic wins and a positive technical trend confirmed by surging trading volumes above 3.3 million shares daily.
Sembcorp successfully issues SGD 300 million in 21-year green bonds through its finance subsidiary. This long-term funding supports Sembcorp’s expanding renewable capacity and underscores its ability to secure attractive rates for decarbonisation projects, strengthening its leadership in Singapore’s green energy market.
Technical indicators remain bullish, with the stock above all major moving averages and nearing resistance levels. Sembcorp’s RSI stands at 70.49, confirming a strong but not excessive rally. All key averages (20, 50, 100, 200 days) signal sustained upside, making the stock increasingly attractive for both institutional and retail SG investors.
Management maintains a healthy dividend payout with a current yield near 5%, appealing to income-focused Singaporean investors. With a forward-looking plan anchored by long-term power purchase agreements and urban solutions, Sembcorp provides visibility on cash flows—a critical element for SG’s yield-oriented market participants.
Analyst sentiment remains firmly positive, supported by new strategic partnerships and successful project wins in Asia. Recent deals in India and Southeast Asia, including the first 24/7 renewable project and major battery storage initiatives, reinforce Sembcorp’s commitment to innovation and regional growth, aligning with Singapore’s sustainability goals and investor expectations.
FAQ
What is the latest dividend for Sembcorp stock?
Sembcorp currently pays a dividend. For the 2024 financial year, the total dividend was SGD 0.23 per share, comprising a final dividend of SGD 0.17 and an interim of SGD 0.06. The latest final dividend was paid after the April annual meeting. The company maintains a consistent distribution policy, and the current yield ranks among the higher payouts on SGX.
What is the forecast for Sembcorp stock in 2025, 2026, and 2027?
Based on the present price of SGD 7.35, the projection is SGD 9.56 for end-2025, SGD 11.03 for end-2026, and SGD 14.70 for end-2027. These expectations align with Sembcorp’s strong momentum in renewables and its leadership in sustainable solutions, supported by a positive analyst consensus and solid long-term contracts.
Should I sell my Sembcorp shares?
Holding Sembcorp shares may be appropriate given its moderate valuation, strategic resilience, and proven dividend track record. The company has demonstrated robust growth and strong positioning in both Singapore and regional markets. Current sector momentum and favourable analyst sentiment further support the outlook for mid- to long-term growth. Investors may wish to review fundamentals periodically to support confident holding.
Are Sembcorp dividends subject to Singapore tax for local investors?
Dividends from Sembcorp are tax-exempt for individuals who are tax residents of Singapore, as local companies do not apply a withholding tax on such distributions. However, capital gains from the sale of Sembcorp shares are not taxed in Singapore. Investors should note that only dividends declared by SGX-listed companies qualify for this exemption.
What is the latest dividend for Sembcorp stock?
Sembcorp currently pays a dividend. For the 2024 financial year, the total dividend was SGD 0.23 per share, comprising a final dividend of SGD 0.17 and an interim of SGD 0.06. The latest final dividend was paid after the April annual meeting. The company maintains a consistent distribution policy, and the current yield ranks among the higher payouts on SGX.
What is the forecast for Sembcorp stock in 2025, 2026, and 2027?
Based on the present price of SGD 7.35, the projection is SGD 9.56 for end-2025, SGD 11.03 for end-2026, and SGD 14.70 for end-2027. These expectations align with Sembcorp’s strong momentum in renewables and its leadership in sustainable solutions, supported by a positive analyst consensus and solid long-term contracts.
Should I sell my Sembcorp shares?
Holding Sembcorp shares may be appropriate given its moderate valuation, strategic resilience, and proven dividend track record. The company has demonstrated robust growth and strong positioning in both Singapore and regional markets. Current sector momentum and favourable analyst sentiment further support the outlook for mid- to long-term growth. Investors may wish to review fundamentals periodically to support confident holding.
Are Sembcorp dividends subject to Singapore tax for local investors?
Dividends from Sembcorp are tax-exempt for individuals who are tax residents of Singapore, as local companies do not apply a withholding tax on such distributions. However, capital gains from the sale of Sembcorp shares are not taxed in Singapore. Investors should note that only dividends declared by SGX-listed companies qualify for this exemption.