Seatrium Investor Day 2024 - OCBC Investment 2024-03-18: Diversified, Resilient & Profitable

• 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 an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Read also OCBC's most recent report:
2024-04-01 Seatrium - Leaving The Past Behind.

Price targets by other brokers at Seatrium Target Prices.

Listing of research reports at Seatrium Analyst Reports.

Relevant links:
Seatrium Share Price History,
Seatrium Announcements,
Seatrium Dividend Payout Dates & Corporate Actions,
Seatrium News