- Seatrium’s first annual profit and first dividend since 2017 underline its comeback which we believe will be sustainable. While its 2H24 gross profit margin was slightly weaker than expected, we prefer to focus on the company’s EBITDA generation which has remained strong.
Back in the black.
- - Read this at SGinvestors.io -
- Importantly, Seatrium achieved S$200m in procurement savings and S$300m in synergy and overhead savings, which are in line with the targets laid out during its Investor Day in 1H24.
A slight surprise – a dividend.
- - Read this at SGinvestors.io -
- While the implied yield based on 21 February’s closing Seatrium's share price is less than 1%, we view the dividend as more of a signal that the management and the board have the conviction that its cashflow is strong and sustainable enough in the medium to long term to maintain, or even grow, its dividend.
- While Seatrium’s 2H24 gross profit margin of 2.7% may have disappointed some in the market, note that the company made S$43m in provisions in 2H24, thus degrading margins on by 1ppt on a h-o-h basis.
Positive outlook for its orderbook.
- 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/ 2025-02-24
Previous report by UOB:
2025-01-03 Seatrium - Positive Developments In 4Q24 Close Out The Year.
Price targets by 3 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
