Friday, 12 December 2014

SEMBCorp Industries

As you all know, SEMBCorp Industries offers a variety of services for

Utilities - such as energy, water and solid waste management
Marine - involving in construction/upgrading/repairing of ship and jack up rigs
Urban Development - holds office/industrial/residential buildings

They operate not only in Singapore but also China, Vietnam and Indonesia.

Today I'm going to zoom in a tiny portion of daily reads that is going to affect SCI.

Solid waste management

NEA has announced that residents in Ang Mo Kio-Toa Payoh, Hougang-Punggol, Woodlands-Yishun and Tanglin-Bukit Merah will be paying more for waste collection from 1st Jan 2014 onwards.

HDB households currently paying $4.82 - $5.81, will pay a uniform fee of $7.49/mth in time to come. Private households currently paying $17.12 - $19.75, will pay $24.81/mth. Contributes to average rise of 25%.

Why is there such a hike? nobody knows the answer. If you are interested you can see how people complain and swear over the real singapore link over here.

But on a contradict, in view of an investor, we could make use of this slight advantage to gain confidence in SCI as they should be our one and only waste management provider (if i am not wrong). I will be initiating a lot of SCI on next week after receiving my cash back from SCB endowment plan.

I think this is a Christmas Sale for SCI, don't worry about the oil prices because the economy has a self-correcting mechanism. The oil price will rise eventually and usually after a crisis affected industry share price will grow stronger.

Buy now at $4.25 or less. TP is $8.00 in 5 years time. I am confident


  1. Waste Management provider in Singapore, one more that I know of: 800 Super

    1. Hi Boon Chin.

      Thanks for the sharing now i know theres 2 waste disposal provider. Im glad i am learning things from fellow bloggers here.

      I believe that sembcorp will take up the majority around singapore as they are backed up by government. Temasek holdings has 50% shares. Maybe this is another alternative by the government to relief sembcorp from the pressure from oil price slump.

  2. I nibbled a little sembcorp industries as well. Kinda attractive entry price to resist. Good luck to us.

    1. Hi LC.

      I duno the oil price will drop further or not but i know it will rise super slightly from the new implemented wasted collection fee.

      No one can tell the present or future. Im going to buy a lot before xmas. And just sit back relax and wait for the outcome.

      In the view of long term investments i think it is a good opportunity to get it now.

    2. Yup! Lets hold for long term. Have my war chest ready to accumulate. Small nibble tomorrow. $3/-?

      Keppel corp, any appetite for that? A counter which is fond of giving it's reits as special dividends. Lol.

    3. Never really see keppel corp yet eh cos its quite expensive to get 1 lot. Maybe on 2015 can slowly by since we can purchase 100 shares then.

      But i think keppel corp is a mature stock liao. Dunno can still stay as focused to grow more in the future like last time or not.

      Regarding the keppel DC reit i think is very stable to be backed up by keppel corp and backed up by government as well. Looking to get the reit if possible but not keppel corp currently..

      Just my feel thats all :)

    4. I too nibbled @ 4.60, now waiting to chop a seat to nibble more SCI ;)

  3. Hi jfree

    I always see Sembcorp truck going down my aisle collecting these waste management. Good to know that they are collecting more revenue for that, though I don't know how much contributions will that add to their bottomline.

    It's definitely a good price out there for SCI. Good P/E, EV/EBITDA and nice yield right now. Definitely one to watch out to bounce back for when oil saga is over.

    1. Hi B!!!

      Great! Now i have even more confidence in that stock as clarified by your analysis.

      Im learning new thing day by day. And infact i know that most of the time im only making my own assumptions without any analysis at all. I only read your previous post about SCI. That makes me confident. In the future soon i hope i will be able and fluent in the calculations and reading the real value of the stocks.

      Once again i am very glad that u still visit my blog!