Seatrium's profit recovery looks sustainable, UOB Kay Hian's Adrian Loh says, noting the company's first full year of profits since 2017 in 2024.
The integrated shipyard disclosed 34% of its net order book of S$23.2 billion, with revenue visibility through to 2031, comprises green and clean energy projects, the analyst says in a research report.
This green and clean energy segment should continue to play an important role in Seatrium's near-to-medium-term growth, given that in 2024, the company successfully delivered the world's first full-scale onboard carbon capture retrofit project, the analyst notes.
The brokerage raises the stock's target price to S$2.96 from S$2.80 with an unchanged buy rating. Shares are 1.75% lower at S$2.25.