BUSINESS:
A conglomerate with two dominant businesses - offshore oil & gas heavy engineering via Sembcorp Marine and a global utilities business
OVERVIEW:
Due to oil price plummeting, the counter has been falling from the past price range (>$5). From the last quarter results, the group delivered higher marine operating marine at 16.1% in 4Q14 vs 11.1% in 4Q13. Excluding a net exceptional gain in 2013, the company would have posted a 7% year on year increase in utilities net profit. Looking ahead, the group has expanded its footprint into power generation projects in India which shall fully contribute to its earning by 2016.
REASON TO BUY:
The counter has declared dividend at $0.11/shares. It is worth to take position into the counter so as to enjoy with potential growrth
ENTRY PRICE:
Accumulate < $4.3
CHART ANALYSIS:
The price has been lingering near to center line of MACD. A breakthrough might see the counter moving towards $4.5 and above.
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