Lifetime Membership As we approach the end of the year, it is time to review the performance of Sembcorp Industries share price. In July 2022, I made a forecast that Sembcorp Industries share price would fly after the Group issued a profit guidance that the “financial results for 1H2022 is expected to be materially higher than 1H2021”. Indeed, Sembcorp Industries share price had a fine run, surging from $3.00 on 22 July to hit a high of $3.50 on 6 September.
Year-to-date, Sembcorp Industries share price increased by an incredible 61.2%, making the counter one of the best performers (if not the best) in Straits Times Index (STI). It seems that not even the market turbulence brought forth by the US interest rate hikes could disrupt the bullish form of Sembcorp Industries share price in 2022. Question now is whether Sembcorp Industries share price can carry on its fine form in 2023?
Admittedly, I am a big fan of Sembcorp Industries as it was my best investment. I had clocked in a profit of $17,500 after cashing out in December 2020. Back then, I had predicted that Sembcorp Industries share price would continue to perform well in 2021, which it did. In my April 2022 article on Sembcorp Industries share price, my target price was $3.00 for FY2022. Obviously, the counter has already crossed the threshold and could have reached a higher level if not for the announcement of the sale of Sembcorp Energy India Ltd (SEIL) on 5 September 2022.
Following the announcement of the sale of SEIL, all hell broke loose as Sembcorp Industries share price plunged from $3.50 on 6 September to reach a low of $2.80 on 25 October. Evidently, the market had reacted negatively to the sale as most investors were expecting the management to list SEIL in India. After all, Sembcorp Industries tried to list the business unit in 2018 but had to postpone the listing because the Group bought over the remaining stakes of SEIL in December 2019. According to India regulations, the change in capital structure would require a re-file of IPO.
To break the fall of Sembcorp Industries share price, the Group resorted to a series of shares buybacks, entering into collaborations in new projects and made several strategic acquisitions on renewable assets in India and China. These efforts helped to revive the form of Sembcorp Industries share price. In this article, I will share my insights on the sale of SEIL and the outlook of Sembcorp Industries share price in 2023.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested in Sembcorp Industries share currently. Whether Sembcorp Industries share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Sembcorp Industries share price in another deconsolidation
Since the fateful demerger of Sembcorp Industries with Sembcorp Marine, Sembcorp Industries share price had gone from strength to strength, surging from $1.20 in September 2020 to the recent high of $3.50. Within the span of just 2 years, Sembcorp Industries share price rocketed nearly 300%. Credit should be given to the Group CEO, Wong Kim Yin, who joined the Group only in July 2020.
The proposed sale of SEIL has taken some shine off the form of Sembcorp Industries share price. In my opinion, the reason for the sale should be due to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]Lifetime Membership
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