Seatrium - DBS Research 2024-08-05: Turnaround Insight; Encouraging Margin Recovery In 1H24

• 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 an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-02-24 Seatrium - Slowly But Surely.

Previous report by DBS:
2025-01-27 Seatrium - Starts The New Year With A Bang!.

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 Dividend Payout Dates & Corporate Actions,
Seatrium News