This underrated business segment may give struggling Sembcorp a new lease on life

It accounts for 5% of the conglomerate’s bottomline.

After being bombarded with numerous headwinds, including lasting woes on its marine segment, Sembcorp may have another ace up its sleeve.

According to analysts from DBS, Sembcorp’s urban development segment provides growth opportunities, though it may not manifest at once.

However, DBS explains that while a strong performance from the segment may not move the needle significantly for now, it represents an avenue for long-term growth.

“SCI has about 3,500ha of saleable land remaining across China, Indonesia and Vietnam, which it can develop,” DBS said.

Meanwhile, the segment may see significant roadblocks along the way, though, in the form of delays in China land sales, said DBS.

“Better sales momentum, which we are seeing a glimmer of, would give some earnings uplift,” DBS added.
 

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