Brokers' take

Sembcorp Industries > Neutral Target price: S$3.60 Nov 3 close: S$3.30 Credit Suisse, Nov 3

UTILITIES' net profit of S$28 million in Q3 '17 was impacted by S$56 million of impairments in Singapore related to an ageing boiler and goodwill for a cogen plant. This was offset by S$14 million writeback of provision related to Jurong Aromatic Corporation (JAC). Excluding these one-offs, Q3 '17 profit of S$70 million was below expectations, driven by losses in India. There were no updates on the strategic review, which chief executive Neil McGregor said was in the final stages and would be announced shortly. No financial targets will be provided in the strategic review. We expect the announcement to be made in late-November. We expect utilities' returns to remain low in the near term.

China Aviation Oil >Neutral Target price: S$1.80 Nov 3 close: S$1.67 RHB, Nov 3