Brokers' take

Sembcorp Industries > Add CGS CIMB, May 3 Target price: S$3.49 May 4 close: S$3.04

FIRST-QUARTER 2018 core net profit of S$76 million (-34 per cent year-on-year) was below expectations at 20 per cent of our forecast for FY2018, mainly because of Sembcorp Marine's (SMM) losses and wider-than-expected losses in India.

However, Sembcorp Industries remains confident that India will be profitable by end-2018. Indian IPO timeline still on track (not disclosed, but we project second-half 2018).