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Stock Profile: SembCorp Industries
Regional Equity Strategy Q4 2007
Income Statement (S$ m) Balance Sheet (S$ m)
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Turnover 7,409.2 8,107.1 8,114.8 9,291.6 Net Fixed Assets 2,627.4 2,534.5 2,811.7 3,088.9
Cost of Goods Sold (6,769.6) (7,215.3) (7,100.5) (8,083.7) Invts in Assocs & JVs 726.4 740.9 823.2 975.5
Gross Profit 639.6 891.8 1,014.4 1,207.9 Other LT Assets 444.6 576.0 576.0 576.0
Other Opg (Exp)/Inc (234.6) (526.1) (368.2) (445.9) Cash & ST Invts 1,231.3 1,185.6 714.5 823.8
EBIT 405.0 365.7 646.1 762.0 Other Current Assets 2,289.4 2,548.8 2,551.2 2,920.3
Other Non Opg (Exp)/Inc 0.0 0.0 0.0 0.0 Total Assets 7,319.1 7,585.8 7,476.6 8,384.5
Associates & JV Inc 78.3 117.3 152.3 222.3
Net Interest (Exp)/Inc (19.0) (5.1) (2.7) (2.7) ST Debt 149.4 216.2 216.2 216.2
Exceptional Gain/(Loss) 43.3 671.0 0.0 0.0 Other Current Liab 3,067.0 2,369.5 2,383.9 2,744.2
Pre-tax Profit 507.6 1,148.9 795.7 981.6 LT Debt 908.7 1,096.2 1,096.2 1,096.2
Tax (92.4) 10.9 (159.1) (201.2) Other LT Liabilities 349.4 444.1 444.1 444.1
Minority Interest (111.9) (130.0) (171.0) (234.0) Shareholder’s Equity 1,999.6 2,811.6 2,517.0 2,830.6
Preference Dividend 0.0 0.0 0.0 0.0 Minority Interests 845.0 648.2 819.2 1,053.2
Net Profit 303.3 1,029.8 465.6 546.4 Total Cap. & Liab. 7,319.1 7,585.8 7,476.6 8,384.5
Net profit before Except. 278.5 379.6 465.6 546.4
EBITDA 589.4 536.0 818.9 934.8 Non-Cash Wkg. Cap (777.6) 179.3 167.3 176.1
Sales Gth (%) 24.7 9.4 0.1 14.5 Net Cash/(Debt) 173.2 (126.8) (597.9) (488.6)
EBITDA Gth (%) 38.9 (9.1) 52.8 14.2
EBIT Gth (%) 67.3 (9.7) 76.7 17.9
Effective Tax Rate (%) 18.2 N/A 20.0 20.5
Cash Flow Statement (S$m)
Rates & Ratios
FY Dec 2005A 2006A 2007F 2008F FY Dec 2005A 2006A 2007F 2008F
Pre-Tax Profit 507.6 1,148.9 795.7 981.6 Gross Margin (%) 8.6 11.0 12.5 13.0
Dep. & Amort. 184.4 170.3 172.8 172.8 EBITDA Margin (%) 8.0 6.6 10.1 10.1
Tax Paid (45.0) (46.8) (146.8) (159.1) EBIT Margin (%) 5.5 4.5 8.0 8.2
Assoc. & JV Inc/(loss) (78.3) (117.3) (152.3) (222.3) Net Profit Margin (%) 4.1 12.7 5.7 5.9
Non-Cash Wkg.Cap. 275.5 (999.0) (0.3) (50.9) ROAE (%) 15.3 42.8 17.5 20.4
Other Operating CF (16.8) (242.3) 0.0 0.0 ROA (%) 6.8 7.1 11.0 12.8
Net Operating CF 827.4 (86.2) 669.1 722.1 ROCE (%) 12.1 11.5 13.9 0.0
Capital Exp.(net) (329.5) (451.5) (450.0) (450.0) Div Payout Ratio (%) 29.9 73.8 50.0 50.0
Other Invts.(net) 121.8 439.9 0.0 0.0 Interest Cover (x) 21.3 71.7 239.3 282.2
Invts in Assoc. & JV 16.6 0.2 0.0 0.0 Debtors Turn (avg days) 68.8 59.5 57.1 53.5
Div from Assoc & JV 75.7 97.8 70.0 70.0 Creditors Turn (avg days) 107.7 86.1 82.4 77.2
Other Investing CF 15.6 (0.1) 0.0 0.0 Inventory Turn (avg days) 43.1 54.1 65.5 61.7
Net Investing CF (99.8) 86.3 (380.0) (380.0) Current Ratio (x) 1.1 1.4 1.3 1.3
Div Paid (516.1) (423.3) (760.2) (232.8) Quick Ratio (x) 0.8 1.0 0.8 0.8
Chg in Gross Debt (791.2) 343.3 0.0 0.0 Net Debt/Equity (X) CASH 0.0 0.2 0.1
Capital Issues (267.2) 71.1 0.0 0.0 Capex to Debt (%) 31.1 34.4 34.3 34.3
Other Financing CF (21.8) (36.9) 0.0 0.0 N.Cash/(Debt)PS (S cts) 9.9 (7.3) (34.2) (28.0)
Net Financing CF (1,596.3) (45.8) (760.2) (232.8) Opg CFPS (S cts) 31.0 52.3 38.3 44.3
Net Cashflow (868.7) (45.7) (471.1) 109.4 Free CFPS (S cts) 28.0 (30.8) 12.5 15.6
Valuation Graph : PE
24.0
22.0
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
2003 2004 2005 2006 2007
Price & Price Relative to Index
S$
Relative Index
237
6.00
217
5.00
197
177
4.00
157
3.00
137
117
2.00
97
1.00
77
2003 2004 2005 2006 2007
SembCorp Industries (LHS) Relative STI INDEX (RHS)
Source: Company, DBS Vickers
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