“The cadence of contract wins seems to have slowed,” says OCBC Investment Research’s Ada Lim, who kept her “buy” call but cut her revenue forecasts given the downside risks to order wins. Lim has also lowered her fair value estimate to $2.76 from $2.82, which remains pegged to a target FY2025 P/B multiple of 1.4 times.
Analysts are remaining optimistic about Seatrium’s outlook despite its lower net order book of $21.3 billion for the 1QFY2025 ended March 31, comprising 26 projects with deliveries till 2031.
In FY2024, Seatrium had a net order book of $23.2 billion with 27 projects slated for delivery through to 2031. The group’s 1QFY2024 net order book stood at $25.8 billion, comprising 31 projects with deliveries till 2030.
