Costly Resolvement Haunts Seatrium: Dip Buying Chance?
$Seatrium Ltd(5E2.SI)$ fell 5.42% today, closing at S$2.27, even after delivering a strong set of results for the first half of 2025.
Net profit of S$144.4 million, up over 300% yoy, marking the second time it has achieved a first-half profit since its restructuring.
Revenue rose 33.7% to S$5.4 billion, and gross profit margin improved from 3.7% to 7.4%.
EBITDA climbed 31% to S$407 million.
EPS increased to S$0.0426
Maintained its policy of not declaring an interim dividend.
As of end-June, Seatrium held a net order backlog of S$18.6 billion, with 34% of it tied to renewable energy and green projects.
Seatrium resolves fines linked to Brazilian corruption probe - Splash247
Why did the stock drop despite strong earnings?
Market concerns linger over the massive fine. Seatrium recently settled a long-running corruption case with a fine exceeding S$240 million.
On July 30, the stock was suspended pending an announcement. After resuming trading, the stock initially dropped but later recovered.
The company disclosed that it had signed a Leniency Agreement with Brazilian prosecutors related to the “Operation Car Wash” corruption investigation.
Seatrium stated that the settlement will not have a material impact on its FY2025 net profit or tangible net asset value per share, as provisions had already been made in previous financial reports.
Furthermore, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) have concluded their investigations into potential legal violations, and no further action will be taken against the company or its staff.
Meanwhile, Citibank has issued a “Buy” rating on Seatrium with a target price of S$2.65.
How do you view the massive fine?
Would you consider $Seatrium Ltd(5E2.SI)$ or $SEMBCORP INDUSTRIES LTD(U96.SI)$?
Which SG stock is oversold this earnings season?
REWARDS
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That said, I see long-term value. With a S$18.6 billion order backlog and 34% tied to green projects, Seatrium is well-positioned for recovery. Citibank’s target price of S$2.65 adds to my confidence. I’m also watching Sembcorp for its clean energy focus & consistent track record.
In terms of oversold plays, I think $SIA(C6L.SI)$ looks interesting. Despite a solid recovery in travel and strong passenger load factors, the stock has been under pressure lately. With travel demand still high and cargo improving, I believe the dip could be a buying opportunity.
@Tiger_SG @Tiger_comments @TigerStars
Seatrium Ltd (5E2) carries higher risk due to its exposure to the cyclical offshore and marine sector, while Sembcorp Industries Ltd (U96) offers more diversification and resilience. However, both are still exposed to tariff-related risks。。。
ComfortDelGro (C52) could be undervalued as public transport demand continues to recover。。。
Tag :
@Huat99
I will not buy both.
At this point, we do not know the effect of the various tariffs on its business.
I view both seatrium and Sembcorp as vulnerable to the impact of tariffs though Sembcorp might be less vulnerable.
To me, it would be safer to watch what unfolds before deciding to invest in them.
@LuckyPiggie @SPOT_ON @Success88 @Kaixiang @Universe宇宙 @HelenJanet @SR050321 @Fenger1188 @Wayneqq @DiAngel come join
Reborn of the next SGX star.... Seatrium