From the perspective of Ho Pei Hwa of DBS Group Research, who has raised her target price slightly from $2.96 to $3, Seatrium’s FY2025 numbers would “materially boost confidence” that it is on a recovery path while CGSI’s Lim and Kande note that with Seatrium’s 2HFY2025 results were 24% above their expectations, they are reiterating their belief that Seatrium’s turnaround is on track.
Seatrium has reported a doubling of its FY2025 earnings to $324 million, on the back of a 24% jump in revenue to $11.5 billion. This marks a significant turnaround from two years ago, when the company recorded a net loss of $1.9 billion for FY2023. The company plans to increase its dividend to 3 cents, double the amount paid in FY2024, when Seatrium resumed paying dividends after seven years.
Following the results, some analysts have raised their target prices, while others have become more cautious. Lim Siew Khee and Meghana Kande of CGS International (CGSI) have maintained their “add” call, along with a higher target price of $2.84 from $2.67; Luis Hilado of Citi raised his target price to $2.70 from $2.60; OCBC Group Research’s Ada Lim raised hers slightly from $2.76 to $2.79 and UOB Kay Hian’s Adrian Loh now rates the company worth $3.15 per share, up from $2.96 previously.
