Seatrium - DBS Research 2023-05-16: The Right Combination For Success

Seatrium has changed its code to Seatrium (SGX:5E2) w.e.f. 2024-05-07 due to share consolidation.

Seatrium - The Right Combination For Success

Seatrium (SGX:S51) | SGinvestors.ioSeatrium (SGX:S51)
  • Seatrium (SGX:S51) won over S$5.3bn new contacts year-to-date, based on our estimates, making up 88% of our full year assumption of S$6bn, ahead of expectations. This lifts the orderbook to ~S$20bn (39% renewable/cleaner energy solutions), providing good revenue visibility for the next 3 years.
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  • Management remains tight-lipped about margin assumption and guidance though they are optimistic on a turnaround given the higher activity level, integration synergies and favourable industry momentum.
  • Seatrium has reviews all its projects. If executed well, they should accrete positively to the bottomline. Projects are assessed based on return and risks, not on a fixed margin.

Possibly double-digit margins and ROE?

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  • In our forecast period, we project revenue to grow from S$5.4bn towards S$8.2bn by FY25F with net margin recovering from a small deficit to 6.8% by FY25F, achieving ROE of ~6.6%. There could be upside to our assumptions on both revenue and margins, in the event of better-than-expect contract wins and project execution.
  • Seatrium could resume dividend payout post earnings turnaround, paying out 30-40% earnings, in our view. This translates to 1-3% dividend yield based on our FY23-24F earnings.

Order outlook is greener and rosier than ever. Seatrium has room for more orders...

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Pei Hwa HO DBS Group Research | 2023-05-16

Read also DBS's most recent report:
2024-03-18 Seatrium - Stronger Than Ever.

Previous report by DBS:
2024-02-27 Seatrium - Despite Write-Downs, Do Not Write-Off.

Price targets by 2 other brokers at Seatrium Target Prices.

Listing of research reports at Seatrium Analyst Reports.

Relevant links:
Seatrium Share Price History,
Seatrium Announcements,
Seatrium Dividends & Corporate Actions,
Seatrium News Articles


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