Broker Name: CGS International
Date of Report: February 27, 2026
Excerpt from CGS International report.
Report Summary
- Seatrium Ltd (STM) reported strong FY25 results, with net profit up 24% in 2H25 and full-year net profit of S\$324m, beating forecasts due to higher associate profits and cost optimisation.
- STM is targeting further margin expansion, higher dividend payouts, and divestment gains (c.S\$160m in FY26F), raising its target price to S\$2.84.
- Key catalysts include order wins (targeting S\$6bn/S\$10bn for FY26F/27F), margin improvements from cost savings and lower provisions on legacy contracts, and favourable resolution of arbitrations.
- STM’s order book stands at S\$17.8bn, with a robust pipeline across FPSOs, HVDC/HVAC platforms, and FLNG/fixed platforms, particularly in Brazil, Germany, Netherlands, and the Middle East.
- ESG performance is strong, with clear targets for sustainable turnover, workplace safety, environmental innovation, and governance, attracting ESG-conscious investors.
- Risks include cost overruns, project cancellations, and higher tax rates, but STM’s turnaround remains on track with continued earnings growth and cost reduction.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
