Should I buy Sembcorp stock in 2025?
Is Sembcorp stock a buy right now?
ScoreSembcorp Industries Ltd, currently trading at approximately SGD 6.59 with an average daily volume of 3.14 million shares, stands out as one of Singapore's leading providers of energy and urban solutions. Recent highlights include a landmark SGD 650 million energy partnership in Southeast Asia, a freshly initiated 'Buy' rating from a global investment bank, and a joint venture advancing green hydrogen projects in India—all underlining Sembcorp's ambitious pivot to sustainable energy. Despite short-term curtailments in renewables and marginally missing some sustainability targets, the company’s robust operational results, rising net profit (+7% in FY2024 to SGD 1.01 billion), and significant expansion in renewables capacity continue to set a constructive tone among market participants. Investors have shown renewed confidence, evidenced by strong price momentum and a technical profile classified as a 'Strong Buy' by multiple industry indicators. The consensus target price of SGD 8.57—endorsed by more than 31 national and international banks—signals broader optimism about Sembcorp’s future, especially as the power sector globally undergoes rapid transformation. In a defensive sector that benefits from government support and clear earnings visibility, Sembcorp’s trajectory holds appeal for investors seeking exposure to Asia’s energy evolution.
- ✅Consistent earnings growth, with net profit surpassing SGD 1.0 billion in FY2024.
- ✅Rapidly expanding renewable capacity: now at 17.0GW regionally and globally.
- ✅Strong financial resilience, trading at an attractive P/E ratio of 11.70.
- ✅Reliable, stable dividend yield of 3.49% with tax-exempt status for locals.
- ✅Major shareholder Temasek Holdings, ensuring robust governance and strategic support.
- ❌Renewables segment faces volatility from weather and grid curtailment in certain markets.
- ❌Will slightly miss its self-imposed 2025 target for sustainable solutions’ profit share.
- ✅Consistent earnings growth, with net profit surpassing SGD 1.0 billion in FY2024.
- ✅Rapidly expanding renewable capacity: now at 17.0GW regionally and globally.
- ✅Strong financial resilience, trading at an attractive P/E ratio of 11.70.
- ✅Reliable, stable dividend yield of 3.49% with tax-exempt status for locals.
- ✅Major shareholder Temasek Holdings, ensuring robust governance and strategic support.
Is Sembcorp stock a buy right now?
ScoreSembcorp Industries Ltd, currently trading at approximately SGD 6.59 with an average daily volume of 3.14 million shares, stands out as one of Singapore's leading providers of energy and urban solutions. Recent highlights include a landmark SGD 650 million energy partnership in Southeast Asia, a freshly initiated 'Buy' rating from a global investment bank, and a joint venture advancing green hydrogen projects in India—all underlining Sembcorp's ambitious pivot to sustainable energy. Despite short-term curtailments in renewables and marginally missing some sustainability targets, the company’s robust operational results, rising net profit (+7% in FY2024 to SGD 1.01 billion), and significant expansion in renewables capacity continue to set a constructive tone among market participants. Investors have shown renewed confidence, evidenced by strong price momentum and a technical profile classified as a 'Strong Buy' by multiple industry indicators. The consensus target price of SGD 8.57—endorsed by more than 31 national and international banks—signals broader optimism about Sembcorp’s future, especially as the power sector globally undergoes rapid transformation. In a defensive sector that benefits from government support and clear earnings visibility, Sembcorp’s trajectory holds appeal for investors seeking exposure to Asia’s energy evolution.
- ✅Consistent earnings growth, with net profit surpassing SGD 1.0 billion in FY2024.
- ✅Rapidly expanding renewable capacity: now at 17.0GW regionally and globally.
- ✅Strong financial resilience, trading at an attractive P/E ratio of 11.70.
- ✅Reliable, stable dividend yield of 3.49% with tax-exempt status for locals.
- ✅Major shareholder Temasek Holdings, ensuring robust governance and strategic support.
- ❌Renewables segment faces volatility from weather and grid curtailment in certain markets.
- ❌Will slightly miss its self-imposed 2025 target for sustainable solutions’ profit share.
- ✅Consistent earnings growth, with net profit surpassing SGD 1.0 billion in FY2024.
- ✅Rapidly expanding renewable capacity: now at 17.0GW regionally and globally.
- ✅Strong financial resilience, trading at an attractive P/E ratio of 11.70.
- ✅Reliable, stable dividend yield of 3.49% with tax-exempt status for locals.
- ✅Major shareholder Temasek Holdings, ensuring robust governance and strategic support.
- What is Sembcorp?
- How much is Sembcorp stock?
- Our full analysis on Sembcorp </b>stock
- How to buy Sembcorp stock in Singapore?
- Our 7 tips for buying Sembcorp stock
- The latest news about Sembcorp
- FAQ
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of Sembcorp for over three years. Each month, hundreds of thousands of users in Singapore rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and should not be considered investment advice. In accordance with our ethical charter, we have never been, and will never be, paid or compensated by Sembcorp.
What is Sembcorp?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Singapore | Singapore-based, with strong local government (Temasek) backing and Asian market focus. |
| 💼 Market | Singapore Exchange (SGX) | Listed on Singapore's main bourse; key constituent in STI Index. |
| 🏛️ ISIN code | SG1R50925390 | Unique identifier for Sembcorp on global financial systems. |
| 👤 CEO | Wong Kim Yin | Appointed in July 2020, he is driving Sembcorp's transformation into renewables. |
| 🏢 Market cap | SGD 11.73 billion | Large-cap company, reflecting investor confidence and sector leadership in energy transition. |
| 📈 Revenue | SGD 6.42 billion (FY2024), SGD 6.90B proj. | Healthy revenue growth; projections indicate increasing scale in 2025. |
| 💹 EBITDA | Not separately disclosed; net profit SGD 1.01B | Profitability is rising; net profit up 7%, showing robust operational performance. |
| 📊 P/E Ratio (Price/Earnings) | 11.70 | Attractive valuation versus peers; suggests further potential for stock price appreciation. |
How much is Sembcorp stock?
The price of Sembcorp stock is rising this week. Currently trading at SGD 6.59, the stock has increased by 1.23% (+SGD 0.08) in the past 24 hours, though it shows a slight weekly decline of 0.15%. Sembcorp’s market capitalisation stands at SGD 11.73 billion, with an average three-month daily volume of 3.14 million shares. The stock offers a P/E ratio of 11.70, a dividend yield of 3.49%, and a relatively low beta of 0.52, signalling moderate price movements compared to the broader market. With steady fundamentals and recent upward momentum, Sembcorp may appeal to investors seeking both growth and stability in Singapore’s evolving energy sector.
| Metric | Value |
|---|---|
| Current Price | SGD 6.59 |
| 24h Change | +1.23% (+SGD 0.08) |
| Weekly Change | -0.15% |
| Market Capitalisation | SGD 11.73 billion |
| Avg 3-Month Daily Volume | 3.14 million shares |
| P/E Ratio | 11.70 |
| Dividend Yield | 3.49% |
| Beta | 0.52 |
Our full analysis on Sembcorp stock
We have carefully reviewed Sembcorp Industries’ latest financial results alongside its solid stock performance over the past three years. Leveraging our proprietary blend of financial indicators, technical signals, market data, and peer comparisons, the following analysis offers a data-driven perspective on what makes Sembcorp a standout name on the Singapore Exchange. So, why might Sembcorp stock once again become a strategic entry point into the energy and urban solutions sector in 2025?
Recent Performance and Market Context
Sembcorp’s stock (SGX: U96) has demonstrated a consistent upward trajectory, exemplified by a robust 31.54% gain over the past six months and a 27.22% increase year-on-year, currently trading at SGD 6.59 as of May 10, 2025. This strength comes amid steady daily trading volumes averaging 3.14 million shares, reflecting sustained investor confidence.
Recent price action has been underpinned by a series of positive developments:
- Major partnerships & investments: The landmark SGD 650 million partnership with Aster in Southeast Asia and the strategic joint venture with BPCL for green hydrogen and renewable energy in India have positioned Sembcorp at the forefront of Asia’s clean energy transition.
- Analyst upgrades: High-profile initiations, such as Goldman Sachs’ recent “Buy” rating, reflect recognition of Sembcorp’s strengthening fundamentals.
- Impactful acquisitions: The completion of a 30% stake in Senoko Energy broadens earnings resilience and widens exposure to Singapore’s core power markets.
The macroeconomic backdrop also continues to favour Sembcorp. Regional governments, especially Singapore’s, are rolling out ambitious energy transition policies, creating fertile ground for companies with large-scale, credible renewable portfolios and strategic government links. As a Temasek-backed entity, Sembcorp is uniquely placed to capture this multi-decade thematic in Asia.
Technical Analysis
Bullish Momentum Supported by Strong Signals
A deep dive into Sembcorp’s technicals reveals a market structure indicative of further upside:
- Relative Strength Index (RSI): At 64.5, the RSI is in a neutral-to-positive zone, suggesting Sembcorp is neither overbought nor overextended, and price action is likely to be supported by healthy buying interest.
- MACD: At 0.14, the MACD recently flashed a sell; however, this minor retracement sits within an overwhelmingly bullish context, given the price remains comfortably above all key moving averages.
- Moving Averages: The current price outpaces major moving averages—20-day (6.38), 50-day (6.14), 100-day (5.86), and 200-day (5.49). This definitive uptrend profile underlines robust short- and long-term sentiment.
- Support and Resistance: Key support sits at SGD 6.44, 6.36, and 6.31; resistance is within close reach at 6.57, 6.62, and 6.70. The ability to hold above the 6.44–6.57 band, with sustained momentum, suggests the stock may soon enter a fresh bullish leg.
Further, technical consensus points to a “Strong Buy” with 15 bullish indicators. Williams %R at -22.50 also carries a positive implication, highlighting active accumulation by the market. Altogether, Sembcorp’s technical framework seems to represent an excellent opportunity, not only for tactical entries but also for longer-term accumulation.
Fundamental Analysis
Earnings Power and Sustainable Growth
Sembcorp’s underlying financial performance substantiates its positive technical profile:
- Revenue and Profit Growth: FY2024 revenue clocked in at SGD 6.42 billion, with net profit rising 7% year-on-year to SGD 1.01 billion—both outpacing analyst expectations amid macro volatility.
- Earnings Quality: EPS stands at SGD 0.56, backed by resilient operating cash flows. Impressively, over 98% of Sembcorp’s gas-fired power business is secured by offtake contracts, and more than 60% of capacity is committed for five years or longer, providing strong earnings visibility and downside protection.
- Sustainable Solutions Leadership: With 17.0GW of renewable capacity and additional 4.1GW secured since 2023, Sembcorp is scaling as a regional leader in renewables and low-carbon urban solutions. The upcoming 600MW hydrogen power plant further catalyses its transition.
Attractive Valuation and Yield
Sembcorp currently trades at a P/E of 11.70—modestly valued relative to global peers in the renewables and utilities space. The dividend yield of 3.49% (with tax-exempt, twice-yearly payments in Singapore) augments the total return profile, presenting an additional incentive for income-focused investors.
Structural Strengths
- Resilient business model: Balanced exposure to regulated renewables, gas-fired power, and urban solutions diversifies risks and delivers a sustainable earnings engine.
- Innovation: Ongoing investments in hydrogen, smart grid, and low-carbon industrial parks (14,400 hectares of land bank) enhance Sembcorp’s innovation premium.
- Brand and Market Share: As Singapore’s leading energy transition player, Sembcorp enjoys strong local and regional recognition—further reinforced by Temasek’s major shareholding, which adds significant institutional credibility.
Volume and Liquidity
Sembcorp’s average three-month daily trading volume of over 3 million shares underscores its high liquidity—ensuring efficient price discovery and ease of entry and exit for institutional and retail investors alike. The free float of approximately 49%, representing nearly 879 million shares, supports dynamic valuation adjustments by the broader market, amplifying the impact of positive news cycles and growth catalysts.
Sustained volume at current levels is a clear sign of enduring market confidence, giving Sembcorp a distinct advantage compared to less liquid SGX names.
Catalysts and Positive Outlook
Structured for Acceleration
Looking forward, several drivers underpin Sembcorp’s robust growth case:
- Pipeline execution: The expansion of Sembcorp’s renewable portfolio remains front and centre, with 17.0GW already in place and a significant pipeline (including 4.1GW added since 2023).
- Strategic investments: The newly announced 600MW hydrogen-ready plant for 2026 will enhance Sembcorp’s early-mover advantage in next-generation energy sources.
- Urban solutions: Robust growth in the low-carbon industrial parks segment, leveraging a vast 14,400 ha land bank, sets the stage for strong, recurring non-cyclical revenues.
- ESG leadership and partnerships: Collaborations with high-profile partners (Aster, BPCL, Senoko) affirm Sembcorp’s capacity for rapid scaling and technological innovation.
Upward Sectoral Tailwind
The regulatory environment is highly favourable. Singapore’s “Green Plan 2030” and broader ASEAN renewable targets ensure policy support for companies in renewables and sustainable infrastructure. Sembcorp’s proven delivery and project execution position it as a clear beneficiary of these multi-year policy shifts.
Earnings and Growth Visibility
With analysts projecting revenues of SGD 6.90 billion for 2025 and an expected earnings CAGR above 10% through 2028, the financial outlook has rarely looked so promising. The market’s consensus 12-month price target stands at SGD 8.57—roughly 30% above the current level—offering an attractive entry point for forward-looking investors.
Investment Strategies
Why This Moment Is Compelling
The prevailing mix of robust fundamentals, technical momentum, and strategic positioning creates a unique entry window:
- Short-term: Momentum traders can harness the positive technical setup and high liquidity, as Sembcorp consolidates just above support with bullish breadth across moving averages.
- Medium-term: Ongoing partnerships, plant completions (notably the hydrogen facility), and further renewable asset additions offer multiple catalyst layers for upward re-rating.
- Long-term: The company’s secured long-term contracts, strategic government support, and innovation roadmap point to a durable growth trajectory, making Sembcorp highly relevant for investors building exposure to the energy transition megatrend.
Entering at, or close to, current levels appears well-justified—given that Sembcorp is not only trading above its breakout technical zones but also on the cusp of realizing fresh revenue streams and sector tailwinds.
Is It the Right Time to Buy Sembcorp?
In summary, Sembcorp Industries stands at the intersection of sustainable growth and compelling valuation. Its recent performance has been reinforced by strong technical indicators, expanding renewable capacity, and highly visible earnings growth, while ongoing innovations and strategic partnerships chart a clear course for further upside.
Key strengths include:
- Double-digit growth prospects, underpinned by a leading renewable portfolio and stable cash-generating gas assets.
- Attractive P/E and dividend yield, highlighting value and income appeal.
- Extensive government backing and strategic shareholding by Temasek.
- Strong technicals supported by market sentiment and high liquidity.
- Multiple growth catalysts across renewables, hydrogen, and urban solutions.
Given this outstanding confluence of technical, fundamental, and structural strengths, Sembcorp seems to represent an excellent opportunity for both tactical investors and those seeking long-term participation in Asia’s energy evolution. With resilient core earnings, visible growth drivers, and a valuation that still trails global renewables leaders, the case for a renewed wave of investor interest is difficult to ignore. As Sembcorp continues to execute and the regional energy transition accelerates, the stock may indeed be entering a new bullish phase—one that merits the close attention of every discerning investor focused on the Singapore market.
How to buy Sembcorp stock in Singapore?
Buying Sembcorp Industries Ltd (SGX: U96) stock online is now both simple and secure when using regulated brokers in Singapore. Whether you’re new to investing or an experienced trader, there are two primary methods to get exposure: buying shares outright (spot/cash buying) or trading via Contracts for Difference (CFDs). Each option has its own characteristics regarding ownership, risk, and costs. To help you make an informed choice, we provide a detailed broker comparison further down the page.
Spot Buying
Cash purchase means you directly buy Sembcorp shares on the Singapore Exchange (SGX) and become a registered shareholder, entitled to dividends and voting rights. Most local brokers charge a fixed commission per order, often ranging from SGD 5 to SGD 25 per trade, plus small clearing fees.
Example
Suppose the Sembcorp share price is SGD 6.59. With a SGD 1,000 investment and a typical brokerage fee of around SGD 5, you could buy approximately 150 shares (SGD 6.59 × 150 = SGD 988.50; plus fee = SGD 993.50).
✔️ Gain scenario: If the share price rises by 10% to SGD 7.25, your shares are now worth about SGD 1,088. Result: +SGD 100 gross gain (about +10% on your capital, before fees and taxes).
Trading via CFD
CFD trading allows you to speculate on Sembcorp’s price movements without owning the actual shares. You can trade both rising and falling markets, often with leverage. CFD brokers typically charge a spread (the difference between buy and sell price) and overnight financing fees for leveraged positions.
Example
You open a CFD position on Sembcorp shares with SGD 1,000 as margin and 5x leverage. This gives you an exposure of SGD 5,000 to the market.
✔️ Gain scenario: If Sembcorp’s price rises by 8%, your position increases by 8% × 5 = 40%, yielding a SGD 400 gain on your SGD 1,000 margin (excluding potential fees). Remember, leverage magnifies both gains and losses.
Final Advice
Before investing, it’s essential to compare brokers’ fees (commissions, spreads, platform charges) and account conditions to ensure they suit your needs and objectives; a comprehensive comparison tool is provided further down the page to assist you. Your ideal approach—cash buying for long-term ownership and dividends, or CFDs for dynamic, leveraged trading—depends entirely on your investment goals and risk appetite. Always invest responsibly and in line with your financial strategy.
Check out the best brokers in Singapore!Compare brokersOur 7 tips for buying Sembcorp stock
| 📊 Step | 📝 Specific tip for Sembcorp |
|---|---|
| Analyze the market | Review Sembcorp’s financial health, recent earnings growth, and positive analyst outlook, understanding its strong position in Singapore’s energy transition and renewable sector. |
| Choose the right trading platform | Use a MAS-licensed, Singapore-based broker that provides access to the SGX, ensuring competitive fees and seamless settlement for local Sembcorp share purchases. |
| Define your investment budget | Determine an appropriate allocation based on your risk profile, considering Sembcorp’s proven growth but also diversifying across sectors to manage exposure to the energy industry. |
| Choose a strategy (short or long term) | Decide between holding Sembcorp for long-term growth—supported by strong government backing and ambitious renewables expansion—or capturing short-term gains from positive market momentum. |
| Monitor news and financial results | Stay updated on Sembcorp’s quarterly earnings, new project announcements, and sector developments, as these factors often influence its stock performance on the SGX. |
| Use risk management tools | Apply stop-loss orders or set investment limits to protect your capital, especially during periods of market volatility or while awaiting key project milestones and results. |
| Sell at the right time | Consider taking profits when Sembcorp stock hits technical resistance levels or after strong positive news, and always reassess your investment if its fundamentals or sector outlook changes. |
The latest news about Sembcorp
Sembcorp secures SGD 650 million regional energy partnership, underscoring regional growth and confidence. This partnership, announced in early May 2025, positions Sembcorp as a key energy player in Southeast Asia and signals strong support for their expansion strategy, particularly across renewables and sustainable solutions. Such high-value, cross-border collaborations not only enhance Sembcorp’s revenue pipeline but solidify its leadership in the regional energy transition, which is closely watched by Singapore investors and analysts.
Goldman Sachs initiates Sembcorp with a “Buy” rating, reflecting international investor optimism. The recent initiation by one of the world’s leading investment banks adds further credibility to Sembcorp’s strategic direction and earnings profile. Goldman Sachs’ endorsement, coming as Sembcorp repeatedly outperforms earnings expectations, boosts institutional sentiment and aligns well with the consensus target price of SGD 8.57, suggesting notable upside from the current levels and supporting higher investor confidence locally.
Sembcorp’s robust Q1 2025 results exceed expectations, with 7% year-on-year profit growth. Driven by resilient performance in both its core power and renewable segments, Sembcorp reported SGD 1.01 billion in net profit on revenues surpassing SGD 6.4 billion for FY2024, outpacing analyst forecasts amid challenging market conditions. This performance demonstrates the company’s ability to navigate volatility, provides a solid foundation for continued dividend payments, and reinforces a positive view in the Singapore equity market.
Technical indicators signal a strong uptrend with overwhelming bullish consensus among analysts. With the share price trading above all major moving averages and momentum metrics such as a bullish Williams %R and a “Strong Buy” technical consensus, the stock has shown +31.5% growth over six months and maintains upward trajectory. This technical strength, coupled with high liquidity on SGX, continues to attract both institutional and retail participation in Singapore.
Sembcorp’s strategic renewable energy and hydrogen initiatives cement its transition leadership in Singapore. Recent achievements, such as securing additional 4.1GW renewable capacity since end 2023 and progressing towards a 600MW hydrogen-ready power plant, underscore its commitment to net-zero goals and regional energy supply security. Given government support via Temasek Holdings and the tax-exempt structure of dividends for Singapore investors, Sembcorp’s growth is not only sustainable but also particularly attractive to the domestic investment community.
FAQ
FAQ
What is the latest dividend for Sembcorp stock?
Sembcorp stock currently pays dividends twice yearly, with the latest declared dividend providing a yield of approximately 3.49%. Dividends are distributed as tax-exempt, one-tier dividends in Singapore. Shareholders benefited from consistent dividend payments, and the company's stable earnings and resilient cash flows support its ongoing commitment to rewarding investors. Historically, Sembcorp has demonstrated a stable dividend trend as it grows its renewables and urban solutions portfolio.
What is the forecast for Sembcorp stock in 2025, 2026, and 2027?
Based on current valuations, the projected price for Sembcorp stock is SGD 8.57 at the end of 2025, SGD 9.89 at the end of 2026, and SGD 13.18 at the end of 2027. Sembcorp stands out as a leader in Asia’s energy transition, reinforced by key growth drivers such as an expanding renewables portfolio, long-term offtake contracts for its gas operations, and strong government backing. The company’s fundamentals and sector momentum strongly support these optimistic projections.
Should I sell my Sembcorp shares?
Given Sembcorp’s solid financial health, attractive valuation, and strategic transition towards renewable energy, holding onto your shares remains a sound consideration. The company consistently delivers resilient earnings, boasts significant long-term contracts, and benefits from strong government support. Technical and fundamental factors both point to robust mid- to long-term growth prospects in the energy sector. Based on fundamentals and the current outlook, holding Sembcorp shares may be well suited to investors seeking growth and stable returns.
How are dividends from Sembcorp stock taxed in Singapore?
Dividends paid by Sembcorp are classified as tax-exempt one-tier dividends, so Singapore-resident investors receive them free of income tax or withholding tax. There is no dividend withholding tax in Singapore for local investors, making Sembcorp dividends fully tax-free. Non-residents may be subject to tax in their home country, but for Singaporeans, these dividends are received net, with no additional reporting required.
What is the latest dividend for Sembcorp stock?
Sembcorp stock currently pays dividends twice yearly, with the latest declared dividend providing a yield of approximately 3.49%. Dividends are distributed as tax-exempt, one-tier dividends in Singapore. Shareholders benefited from consistent dividend payments, and the company's stable earnings and resilient cash flows support its ongoing commitment to rewarding investors. Historically, Sembcorp has demonstrated a stable dividend trend as it grows its renewables and urban solutions portfolio.
What is the forecast for Sembcorp stock in 2025, 2026, and 2027?
Based on current valuations, the projected price for Sembcorp stock is SGD 8.57 at the end of 2025, SGD 9.89 at the end of 2026, and SGD 13.18 at the end of 2027. Sembcorp stands out as a leader in Asia’s energy transition, reinforced by key growth drivers such as an expanding renewables portfolio, long-term offtake contracts for its gas operations, and strong government backing. The company’s fundamentals and sector momentum strongly support these optimistic projections.
Should I sell my Sembcorp shares?
Given Sembcorp’s solid financial health, attractive valuation, and strategic transition towards renewable energy, holding onto your shares remains a sound consideration. The company consistently delivers resilient earnings, boasts significant long-term contracts, and benefits from strong government support. Technical and fundamental factors both point to robust mid- to long-term growth prospects in the energy sector. Based on fundamentals and the current outlook, holding Sembcorp shares may be well suited to investors seeking growth and stable returns.
How are dividends from Sembcorp stock taxed in Singapore?
Dividends paid by Sembcorp are classified as tax-exempt one-tier dividends, so Singapore-resident investors receive them free of income tax or withholding tax. There is no dividend withholding tax in Singapore for local investors, making Sembcorp dividends fully tax-free. Non-residents may be subject to tax in their home country, but for Singaporeans, these dividends are received net, with no additional reporting required.
