First, the government is seen to open up new contracts for bidding so as to increase power generation by 2028 to meet growing demand, seen to increase at between 4 -6% CAGR by 2028.
In addition, HDB has launched its largest solar leasing tender to date, with a capacity of 113 MW peak.
DBS points out that Sembcorp Industries won three out of seven HDB solar leasing tenders to date, and that with this track record, it is well positioned to win more new contracts.
“Although the impact on EPS and NTA of Sembcorp may not be material based on previous tenders, we think this could further solidify Sembcorp’s position as a leading renewable energy player in Singapore,” adds DBS.
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As at 3.13pm, Sembcorp Industries changed hands at $4.34, up 1.17%.
