Yearly P/L review: My biggest winner on Moomoo
I bought $Sembcorp Ind(U96.SG$ which is one of the largest conglomerates listed on our local bourse, after its divestment of Sembcorp Marine (now $Seatrium(S51.SG$ ) a couple of years ago.
At that time, I thought that divesting the struggling Sembcorp Marine was a good move, as the off-shore and marine industry was underperforming and dragging down the overall profitability of Sembcorp Industries. Sure enough, Semborp Industries’ stock price had soared after the divestment.
I also believed that Sembcorp Industries was undervalued, given its growing focus on renewable energies that I felt had not been completely appreciated by investors and not fully factored into its stock price then. With rising global awareness of climate change and its environmental impacts, growing focus on low or zero carbon emissions around the world, and gradual transition to sustainable forms of energy (the recent announcement at COP 23 on agreement to transition away from fossil fuels is a great movement in the right direction for our future generations), Sembcorp Industries stands to benefit from its years of investments and first mover advantages in the renewable energies sector.
Already an undisputable leader on renewables in our domestic market, Sembcorp Industries has also been rapidly expanding overseas and especially in Middle East to capitalise on the growing opportunities on renewables there.
I also like Sembcorp Industries’ utilities and waste management businesses that are recession-proof, in the sense that regardless of the economic conditions, there will be inelastic and sticky demands for its services. This helps me in diversifying my portfolio which also comprises of technology stocks that are more volatile.
So far my conviction has rewarded me handsomely, as Sembcorp Industries’ stock price doubled over the years, while I collect its growing dividends at the same time.
Hopefully 2024 will bring more cheers to the stock market and send Sembcorp Industries to greater heights!
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102131151PH : Great investment!
Asphen : excellent!
Forever Healthy : Good buy!!!
Toby_Chua : Took profit at $5.88
Shootingstar : I think in the past all o&m went to keppel which built it up before they decided to let it go and only unwanted contracts by them went to sembcorp marine. Now the story is different.
Blue chipOP Toby_Chua: Hope Sembcorp Industries surpasses its past glory over time! :)
dondonKing : fantastic profit
yeow : is this a daily fund ?