- Excluding provisions and disposal gains, gross margin climbed to ~8%, lifting Seatrium's 1H24 core profit to S$150mil. See Seatrium's announcement dated 2 Aug 2024.
Better-than-expected core profit in 1H24.
- - Read this at SGinvestors.io -
Commendable operating performance.
- Besides the legal settlement provision, COGS also took a hit of an incremental S$70mil in provisions for onerous contracts. Excluding both provisions, gross margins would have inched up to ~8%, which we thought is decent, indicative of a margin recovery for Seatrium.
- - Read this at SGinvestors.io -
- Sequential operational improvement would be closely tracked to access the progress of Seatrium’s recovery; it has been loss-making for six years in a row.
Further provision risks likely to be lower in 2H24.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Pei Hwa HO DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-08-05
Read also DBS's most recent report:
2024-11-11 Seatrium 3Q24 Business Update - Healthy Order Pipeline.
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
