One of the key reasons why Sembcorp Industries stock has done so well in 2022 – it’s up 73% year-to-date – is that its business has benefitted from rising power prices.
And as one of the key providers of clean electricity in Singapore, it has demonstrated pricing power. In addition to that, sheeding legacy power assets over the past few years has helped the firm broaden its potential investor base.
With a Return on Equity (ROE) of an annualised 23.1% in H1 2022, SCI saw a marked improvement in its ROE profile versus the year-ago period (8.5%).
Unsurprisingly, the first half of 2022 saw both revenue and net profit surge for SCI (see below).
Tim, based in Singapore but from Hong Kong, caught the investing bug as a teenager and is a passionate advocate of responsible long-term investing as a great way to build wealth.
He has worked in various content roles at Schroders and the Motley Fool, with a focus on Asian stocks, but believes in buying great businesses – wherever they may be. He is also a certified SGX Academy Trainer.
In his spare time, Tim enjoys running after his two young sons, playing football and practicing yoga.