Brokers' take

Sembcorp Industries | Buy

Target price: S$3.07

Aug 3 close: S$2.74

OCBC Investment Research, Aug 3

STRIPPING out one-off items, we estimate core net profit fell by about 37 per cent year on year to S$125 million in Q2 2016, such that H1 2016 core net profit accounted for 55 per cent of our full-year figure; hence within expectations.

Utilities saw a 20 per cent year-on-year drop in turnover to S$894.7 million, but was flat quarter on quarter; utilities net profit of S$74.6 million was also similar to Q1 2016's S$75.2 million. Singapore operations remained weak, and we understand that power spreads was marginally lower f…