Brokers' take

Sembcorp Industries | Buy Fair value: S$3.59 March 22 close: S$3.09 OCBC Investment Research, March 22

With further liberalisation of Singapore's retail electricity market, there have been questions on the impact on utilities players such as Sembcorp Industries.

First, we note that Sembcorp's Singapore energy business is broken down into three business lines: gas and power, merchant and retail, and renewables and environment.

Under gas and power, Sembcorp imports natural gas from Indonesia, which is supplied to major power generation and petrochemical companies. In addition, the group has two gas-fired, co-generation plant…