Since my last coverage on Sembcorp Industries share price in June 2021, there was much volatility for this counter. The pandemic disaster in India had led to plenty of uncertainties for Sembcorp Industries’ India thermal projects, causing Sembcorp Industries to be bearish from June to October 2021. The litmus test arrived when the Group announced on 2 August 2021 the impairment of $212 million for its 49%- owned joint venture Chongqing Songzao Sembcorp Electric Power Co.
That announcement on 2 August 2021 caused Sembcorp Industries share price to tumble to a low of $1.80 in October 2021. Consequently, the management went on a rescue mission for Sembcorp Industries share price by embarking on a series of shares buybacks. As at 13 December 2021, the management repurchased 6,780,700 shares from the market. Based on the recent bullish run of Sembcorp Industries share price, it seems that the shares buybacks helped to revive the stock.
Since the fateful demerger of Sembcorp Industries with Sembcorp Marine, Sembcorp Industries share price had gone from strength to strength, surging from $1.18 in September 2020 to the recent $2.65. Within the span of just 1.5 year, Sembcorp Industries share price rocketed more than 100%. With the robust Sembcorp Industries share price, credit should be given to the Group CEO, Wong Kim Yin, who joined the Group only in July 2020.
Although CEO Wong Kim Yin joined the Sembcorp Industries only in 2020, he had steered the Group through a challenging and tumultuous period brought forth by the pandemic crisis. This is really no mean feat. Many critics would argue that Sembcorp Industries is backed by Temasek Holdings, so a corporate turnaround is a given. To this end, I would disagree. I have seen many cases of listed entities backed by Temasek Holdings failing to achieve …Read more