$Sembcorp Ind(U96.SG)The main issue is 2026 earnings pressure. Sembcorp has already warned that newly contracted Singapore gas volumes will have lower margins. Its renewables business also faces China tariff/curtailment pressure. On the positive side, new renewable capacity is coming online through 2030, its new 600 MW hydrogen-ready plant is expected in 4Q26, and management expects the Alinta acquisition to strengthen recurring earnings and cash flow.

I particularly like Sembcorp around today's level because the valuation has already absorbed considerable concern over weaker Singapore power margins, while the longer-term renewable expansion and new hydrogen-ready generation capacity remain intact.