- Seatrium’s 1Q23 business update displayed strong cashflow generation, as evidenced by its materially lower gearing levels. However, it is the company’s potential to continue to grow its orderbook in the oil & gas and renewables space that is exciting in our view.
- - Read this at SGinvestors.io -
- Maintain BUY recommendation on Seatrium with an upgraded target price of S$0.17.
Seatrium's Investor meetings underlined an ocean of potential growth for the company, in our view.
- After its 1Q23 business update, Seatrium (SGX:S51) attended a group meeting with investors where the company outlined its path towards sustainable growth and profitability, with the key being retention of people and talent in order to take advantage of the multitude of opportunities in the offshore marine space.
We estimate another S$10b upside to current orderbook of S$20b.
- - Read this at SGinvestors.io -
- In addition, offshore wind in developed markets like the US and Europe remains highly promising. Seatrium's management affirmed that it has the capacity to accept more projects – and looking to fill its 2028/29 production schedule – but given the shortage of global yard capacity strong level of enquiries it will not “sell slots”.
Margins and returns on new projects.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-05-17
Read also UOB's most recent report:
2024-03-18 Seatrium - No Surprises At Its Inaugural Investor Day.
Previous report by UOB:
2024-02-28 Seatrium - 2023 Underying EBITDA & Profit Are Encouraging.
Price targets by 4 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
