“Seatrium’s onerous loss-making projects in the US are nearing completion and could be delivered by early FY2025. Hence, our thesis of recovery in gross margins is still on track,” Lim and Kande write in their Jan 20 report.
CGS International analysts Lim Siew Khee and Meghana Kande have kept their “add” call on Seatrium with a higher target price of $2.90 from $2.69 previously, as they see the likelihood of sequential improvement in 2HFY2024 ended Dec 31, 2024.
Ahead of Seatrium’s 2HFY2024 and FY2024 results, the analysts believe Seatrium is likely to remain profitable with core net profit estimated at $83 million for the six-month period and $198 million for the full year. Seatrium is likely to report its results on the week of Feb 17.
