"We attribute SCI’s strong share price performance year to date to stable growth outlook, healthy dividend and payout growth, and strategic renewables expansion," says OCBC.
In a recent positive development, SCI had on June 13 completed a deal to raise its stake in Senoko Energy from 30% to 50%.
"The increased stake in Senoko Energy reinforces SCI’s commitment to supporting Singapore’s energy security and ensuring the delivery of reliable energy solutions for customers and the nation," says OCBC.
Senoko Energy, as described on its website, has a licensed capacity of 2,644 megawatts (MW) and supplies about 20% of Singapore's electricity needs.
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OCBC expects SCI's earnings to be supported by the incremental stake in Senoko Energy, as well as SCI's own expansion in renewable capacity.
Longer-term growth in power demand is seen from growing application of AI capabilities, something which SCI is well-positioned to capture, says OCBC.
SCI shares gained 0.93% to change hands at $7.58 as at 11.02 am.
