Brokers' take

Sembcorp Industries | ADD Aug 21 close: S$2.75 Target price: S$3.49 CGS-CIMB, Aug 21

Sembcorp Gayatri Power Limited (SGPL) power plant won a competitive tender to supply 250 megawatts of power to Bangladesh Power Development Board (BPDB) over 15 years.

We think the export of power is a good start and expect to see more in the pipeline, given the supply shortage in Bangladesh. The country is opening up avenues to import power from India, and the media has reported that it is looking to ramp up its power imports to 10,000 megawatts by 2041.