- Seatrium (SGX:S51) hosted its inaugural Investor Day on 15 Mar 2024, where it shared its FY28 targets.
FY28 targets are reasonable and achievable, in our view
1) Revenue of S$10-12b (FY23: S$7.3b).
- - Read this at SGinvestors.io -
- Seatrium is also looking to improve contract terms with better risk sharing and progressive milestone payments.
2) EBITDA of at least S$1b (FY23 underlying EBITDA: S$628m).
- Majority of its legacy projects are likely to be delivered by FY24, and management is targeting new projects to meet a minimum internal hurdle rate of mid-teens gross margin.
- - Read this at SGinvestors.io -
- There is an additional S$200m of potential procurement savings as well from improved supply chain management and better procurement efficiency.
3) ROE of at least 8%.
4) Net debt/EBITDA of 2-3x.
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-03-18
Read also OCBC's most recent report:
2024-04-01 Seatrium - Leaving The Past Behind.
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
