Should I buy Sembcorp Industries stock in 2025?

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At HelloSafe, our expert has been following the performance of Sembcorp Industries for over three years. Every month, tens of thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In keeping with our ethical charter, we have never been, and will never be, compensated by Sembcorp Industries.

What is Sembcorp Industries?

How much is Sembcorp Industries stock?

The price of Sembcorp Industries stock is rising this week. As of now, the share price stands at SGD 6.59, reflecting a 1.23% gain over the past 24 hours, though it has slipped slightly by 0.15% on a weekly basis.

Sembcorp’s stock trades at a P/E ratio of 11.77 and delivers a 3.49% dividend yield, while its beta of 0.52 indicates relatively low market volatility. This combination of stable performance and growing dividends suggests Sembcorp may appeal to investors seeking both resilience and income in Singapore’s dynamic market.

Our full analysis on Sembcorp Industries stock

We have undertaken a comprehensive review of Sembcorp Industries’ latest published financial results alongside its multi-year stock performance, integrating proprietary analysis that blends fundamental indicators, technical signals, market data trends, and peer benchmarking. By synthesizing these diverse perspectives, we provide a dynamic assessment designed to empower investors evaluating Sembcorp’s role at the intersection of energy transition and integrated urban solutions. So, why might Sembcorp Industries stock once again become a strategic entry point into the sustainability-focused utilities sector in 2025?

Recent Performance and Market Context

Sembcorp Industries (SGX: U96) has exhibited notable resilience and positive momentum against the backdrop of a rapidly evolving energy and utilities landscape in Singapore and across Asia. As of May 2025, the stock trades at SGD 6.59 per share, reflecting a market capitalization of SGD 11.73 billion—an impressive demonstration of confidence from the market. Over the past six months, Sembcorp’s share price has delivered a robust 31.5% gain, and over one year the increase stands at 27.2%, underscoring clear upward momentum that outpaces many regional peers.

Crucially, this performance is underpinned by a string of positive business developments:

• Strategic acquisitions—notably the 30% interest in Senoko Energy—have fortified Sembcorp’s market positioning and growth optionality.
• The company achieved a major milestone by expanding its renewable capacity to 17GW, securing 4.1GW of new projects since late 2023. This cements Sembcorp’s leadership in clean energy transition and aligns with regulatory and end-client demand for sustainable energy sources.
• Substantial growth in the Integrated Urban Solutions segment, highlighted by a 40% YoY jump in profits, complements its energy business and offers diversification benefits.

The macroeconomic environment is also deeply supportive. Singapore’s progressive energy policies and regional decarbonization initiatives continue to favour established, agile operators like Sembcorp that can balance stable conventional assets with ambitious renewables growth. In addition, Sembcorp’s inclusion in major indices such as the Straits Times Index and multiple ESG benchmarks attests to its market stature and commitment to sustainable value creation.

Technical Analysis

A review of Sembcorp’s technical profile reveals a stock with unmistakable bullish undertones:

• Price consistently above key moving averages (20, 50, 100, 200-day EMA): Current price (SGD 6.59) exceeds all major moving averages, a textbook sign of upward trend durability.
• RSI (14) stands at 66.02, suggesting strong (but not yet overextended) momentum. While it is approaching overbought territory, such readings often correspond to periods where sustained buying interest supports follow-through rallies.
• MACD (12,26,9) at 0.15 is technically flashing a modest sell signal, yet this may reflect short-term profit-taking after sustained gains, commonly presenting attractive entry points for medium- to longer-term accumulation strategies.

Critically, support levels at SGD 6.41–6.46 have held during recent consolidations, providing a technical floor, while resistance at SGD 6.63–6.74 offers clear upside targets as momentum builds. The resilient volume of 4.44 million shares (3M average) signals active participation and liquidity—attributes that support dynamic price discovery and investor confidence.

All technical factors considered, Sembcorp appears to be consolidating within a bullish structure, well-positioned for renewed upward movement especially should fundamentals continue to surpass market expectations.

Fundamental Analysis

Robust Profitability and Growth Orientation

Despite a 9% decline in reported revenues for FY2024 (SGD 6.42 billion), Sembcorp achieved a remarkable 7% YoY growth in net profit (SGD 1.01 billion), illustrating its ability to extract higher returns from its portfolio even in shifting market conditions. This profit expansion is supported by:

• Margin resilience in core energy businesses, underpinned by 98% of the group’s gas-fired plant capacity being covered by long-term offtake contracts—over 60% extending beyond five years.
• Integrated Urban Solutions delivering a standout 40% increase in segment profit, driven by strong land sales in Vietnam and Indonesia.

Dividend Policy Reflects Management Confidence

The FY2024 total dividend surged to SGD 0.23/share, representing a 77% increase YoY and a yield of 3.49%, with a payout ratio increased to 40% (up from 23%). This signals not only strong current cash flow but also management’s belief in recurring and growing earnings streams. For investors seeking income and capital appreciation, this marks a particularly attractive combination.

Attractive Valuation Versus Peers

With a P/E ratio of 11.77, Sembcorp trades at a significant discount to many global and regional clean energy peers, making it relatively undervalued given its growth trajectory and strategic milestones. The price-to-book ratio of 2.16 is fully justified by its capital-light expansion into renewables and high-value urban solutions, while its low beta (0.52) offers defensive characteristics atypical for energy transition plays.

Strategic Strengths Behind Sustainable Value Creation

• Balanced, diversified portfolio straddling conventional and renewable energy, with risk mitigated through geographical and technological breadth.
• Integrated business model—the synergy between power generation and urban development underpins competitive advantage and value capture across the project lifecycle.
• Market-leading renewables ramp-up—now targeting 25GW by 2028, Sembcorp is positioned to benefit from secular shifts toward decarbonization and electrification across Asia.

Volume and Liquidity

Liquidity is a mark of institutional conviction, and Sembcorp’s three-month average daily trading volume of 4.44 million shares is a testament to robust participation from long-term investors, funds, and active traders. This sustained turnover boosts price efficiency, ensures ready execution for large orders, and limits volatility—an essential attribute for a core long-term holding. Additionally, Sembcorp’s share float, spread across prominent indices and ESG funds, is favourable for a dynamic valuation re-rating as the investor base broadens further.

Catalysts and Positive Outlook

Multiple Drivers for Future Upside

• Transformative acquisitions and renewables pipeline: The recent expansion to 17GW of renewable capacity across 11 countries, coupled with ambitious targets for 25GW by 2028, provides a clear avenue for sustained growth, especially as regulatory and client pressures favour clean energy solutions.
• Secured earnings base from contracted gas-fired power generation anchors downside risk, allowing Sembcorp to invest and scale in new markets from a position of financial strength.
• 600MW hydrogen-ready power plant, set to become operational in 2026, will further enhance both Sembcorp’s earnings and ESG profile, supporting Singapore’s hydrogen and net-zero ambitions.
• Strategic review underway (announced March 2025), with the potential to unlock further value through portfolio optimization, capital recycling, or new partnerships.

Upward Sector Context

• Policy tailwinds—Asia’s energy transition is accelerating, with Singapore and regional neighbours rolling out incentives for renewables, grid modernization, and urban sustainability.
• ESG inclusion and index status—ongoing recognitions by FTSE4Good and MSCI ESG indices continue to drive incremental inflows from global sustainability-focused funds.
• Dividend growth—management’s recent hike in the payout ratio and 77% YoY increase in distributed dividends is a powerful signal for sustained returns and rising shareholder value.

Investment Strategies

Sembcorp Industries appears optimally positioned for investors across various time horizons:

• Short-term: Near-term catalysts—such as further details from the ongoing strategic review, progress updates on the hydrogen-ready power plant, or renewables project commissioning—suggest scope for positive newsflow and re-rating.
• Medium-term: The ongoing portfolio transition and institutional uptake of ESG-linked funds can drive valuation normalization toward sector leaders, especially as the 25GW renewables goal comes into clearer focus.
• Long-term: Sembcorp presents a compelling case as a core holding in the ASEAN energy transition story, underpinned by strong cash flows, scalable project pipeline, and a progressively internationalized and diversified earnings base.

Moreover, the current technical structure—characterized by consolidation above major support levels with clear upside resistance targets—may offer investors an appealing window to position ahead of the next phase of strategic execution.

Is it the Right Time to Buy Sembcorp Industries?

In summary, Sembcorp Industries brings together a rare blend of financial resilience, strategic foresight, and powerful long-term growth drivers—making it a stock that commands attention at its current juncture. Key strengths such as an ambitious but balanced expansion into renewables, stable contracted cash flows, strong dividend growth, and attractive forward valuation converge to justify renewed investor interest.

• Strengths at a glance:
• Balanced portfolio spanning conventional and renewable assets
• Impressive earnings and dividend growth, underpinned by long-term contracts
• Strong liquidity and market participation
• Multiple medium-term growth catalysts on the horizon
• Defensive characteristics (low beta) paired with sector-leading ESG credentials

Given the strategic clarity, robust technical and fundamental underpinnings, and a macro context highly favourable to sustainability leaders, Sembcorp Industries’ stock seems to represent an excellent opportunity for investors seeking both stability and long-term growth. For those focused on the high-conviction transition themes within Asia’s utilities sector, the fundamentals and outlook convincingly justify a serious consideration for a position in Sembcorp Industries as it may be entering a new bullish phase in 2025 and beyond.

The convergence of technical strength, growing dividends, defensive balance, and ambitious renewables growth unmistakably positions Sembcorp Industries as a standout stock in the energy transition space—a potential inflection point that proactive investors may look back on as a decisive moment of opportunity.

How to buy Sembcorp Industries stock in Singapore?

Buying shares in Sembcorp Industries (SGX: U96) online is simple, secure, and accessible for all Singapore-based investors. Thanks to regulated brokers in Singapore, you can invest in Sembcorp via two main methods: spot (cash) buying and CFD (Contract for Difference) trading. Spot buying means you purchase actual shares, becoming a shareholder, while CFDs allow you to speculate on share price movements with leverage—without direct ownership. Both methods are easy to use with leading Singaporean brokers, who prioritise your account security. To help you choose the right platform, you’ll find a detailed broker comparison further down the page.

Spot Buying

A cash or spot purchase of Sembcorp Industries stock means you directly buy and own Sembcorp shares listed on the Singapore Exchange (SGX). This traditional investment route gives you shareholder rights, including dividends and voting privileges at company meetings. Typical fees with Singapore brokers are straightforward: expect a fixed commission per order, usually around SGD 5–15 depending on the broker and order size.

Concrete example

If the Sembcorp Industries share price is SGD 6.59, you can buy approximately 151 shares with a SGD 1,000 investment, after accounting for a SGD 5 brokerage commission.
✔️ Gain scenario: If the share price rises by 10%, your 151 shares become worth SGD 1,100.
Result: That’s a +SGD 100 gross gain, i.e., +10% return on your original investment—excluding possible taxes and fees.

Trading via CFD

CFD (Contract for Difference) trading on Sembcorp Industries allows you to speculate on the stock’s price movements without owning the underlying shares. Instead, you trade a contract reflecting the share’s price, often with leverage. With CFDs, you pay a spread (small difference between buying and selling prices) and, for overnight positions, financing fees.

For example

You open a CFD position on Sembcorp Industries with a SGD 1,000 stake and apply 5x leverage, giving you market exposure of SGD 5,000.
✔️ Gain scenario: If Sembcorp’s share price increases by 8%, your investment gains 8% × 5 = 40%.
Result: That’s a SGD 400 profit on your SGD 1,000 margin (excluding fees), showing the potential impact of leverage.

Final Advice

It’s essential to compare fees, available features, and trading conditions between brokers before making your choice—our comprehensive comparator below will help. Ultimately, your chosen method depends on your investment goals: buy-and-hold investors may prefer cash purchases for stability and dividends, while active traders seeking short-term gains might lean toward CFDs for flexibility and leverage. Taking time to review your options will set you up for a successful investment journey with Sembcorp Industries.

Our 7 tips for buying Sembcorp Industries stock

The latest news about Sembcorp Industries

Sembcorp Industries' share price shows strong momentum and outperforms the broader Singapore market over six months. In the most recent week, Sembcorp’s stock has held steady with only minor fluctuations, closing at SGD 6.59 as of May 9, 2025, up 1.23% in the past 24 hours and a notable 31.54% over six months. With a 27.22% rise year-on-year and volumes remaining robust, Sembcorp maintains a beta of 0.52, indicating less volatility compared to the broader market. Technical indicators such as the 20-, 50-, 100-, and 200-day moving averages remain decisively bullish, supporting positive sentiment among Singaporean investors.

Sembcorp delivers a substantial full-year dividend boost, reinforcing its commitment to shareholder returns. The company declared a final dividend of SGD 0.17 per share to be paid on May 13, 2025, bringing the total FY2024 dividend to SGD 0.23 per share—a remarkable 77% year-on-year increase. The dividend payout ratio has correspondingly increased from 23% in FY2023 to 40% in FY2024, underscoring management’s confidence in future cash flow generation and ongoing commitment to rewarding shareholders, a move likely to appeal to local income-focused investors.

Sembcorp’s financial results highlight resilient profit growth despite revenue headwinds from renewables and gas segments. For FY2024, Sembcorp Industries reported a net profit of SGD 1.01 billion, rising 7% year-on-year, even as revenue slipped by 9% due to renewable energy curtailment in China and weaker wind resources in India. This profit growth was driven by higher contributions from the Integrated Urban Solutions segment, which saw a 40% surge in profit on the back of strong land sales in neighbouring Asian markets. The result demonstrates Sembcorp’s effectiveness in diversifying earnings streams and managing regional operational risks.

Sembcorp cements its position as a leading Singaporean energy player with strategic asset acquisitions and contract wins. In November 2024, the company completed the acquisition of a 30% stake in Senoko Energy, further strengthening its core presence in Singapore’s power market. Concurrently, Sembcorp now boasts 98% of its gas-fired portfolio underpinned by offtake contracts—over 60% locked in for five years or more—significantly enhancing visibility of future earnings and supporting the company’s cash flow stability within the local regulatory environment.

The group advances its renewables strategy and low-carbon transformation with new project milestones and portfolio expansion. Since the start of 2024, Sembcorp has secured an additional 4.1GW of renewable energy capacity across Asia, lifting its total renewables platform to 17GW as it targets 25GW by 2028. Domestically, the development of a 600MW hydrogen-ready power plant remains on track for a 2026 launch. These milestones cement Sembcorp’s position as a regional sustainability leader and reinforce Singapore’s ambitions to become a low-carbon energy hub, presenting long-term growth catalysts for shareholders with ESG mandates.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.