S51.SI Stock Today: February 26 – FY Profit Doubles; S$0.03 Dividend
Seatrium share price is in focus today after the group reported full-year earnings of about S$323.6 million, roughly double the prior year, and proposed a final dividend of S$0.03 per share. On SGX, S51.SI last closed at S$2.21, down 1.8%, as the market weighed margin gains against execution risks. We break down what drove Seatrium earnings, what the dividend means for yield, and how the setup looks for Singapore investors tracking large-cap industrials.
FY results and a 3-cent payout
Management cited higher revenue recognition from ongoing projects, associate gains, and lower finance costs as key supports for profit. These align with TTM trends showing revenue growth near 26.6% and strong gross profit improvement. The full-year result, reported on 26 Feb, underscores improving operating leverage, even as net margins remain thin at about 2.51% TTM. See coverage from The Edge Singapore.
The board proposed a S$0.03 final dividend. On the last close of S$2.21, that implies an indicative yield of about 1.36%. While modest, it signals confidence after a year of stronger Seatrium earnings. Payouts still depend on cash generation from project milestones and working capital movements, which can swing quarter to quarter for yard operators.
Market reaction and key levels
The Seatrium share price ended at S$2.21 on the latest close, slipping 1.8% as traders locked in gains and awaited further guidance. Liquidity remains solid, with average daily volume around 33.1 million shares. Local watchlists highlighted the name following results and the proposed Seatrium dividend, per Business Times.
The Seatrium share price trades above its 50-day average of S$2.09 and 200-day average of S$1.75, showing an intermediate uptrend. The 52-week range spans S$1.36 to S$2.59. A sustained break above S$2.59 could support momentum, while the S$2.09 area is the first support. A decisive close below S$1.75 would weaken the longer trend.
Valuation and financial quality
On trailing numbers, S51.SI screens at about 32.55 times earnings, 0.82 times sales, and 1.32 times book. Enterprise value sits near 0.94 times sales and roughly 10.99 times EBITDA. These suggest investors expect further margin gains and delivery discipline. For context, net income per share TTM is about S$0.078, so earnings growth needs to continue to defend multiples.
Margins have improved but remain thin: operating margin about 2.08% and net margin around 2.51%. Free cash flow yield screens strong at roughly 12.41% TTM, though yards’ cash flows can be lumpy. Liquidity is adequate with a current ratio near 1.07. Net debt to EBITDA is about 1.42, and interest coverage near 1.10 warrants close monitoring.
What to watch next
Investors should watch new order wins, delivery progress on offshore energy and renewables projects, and any updates on associate contributions. Finance costs matter as rates ease. Stronger revenue recognition without cost overruns can lift margins. Clear guidance on 2025 milestones would be supportive for the Seatrium share price and sentiment.
Consider position sizing around key levels: S$2.09 as near-term support and S$2.59 as resistance. Track the Seatrium dividend timeline, including ex-date and payment date, for yield planning. If you trade, use stops under the 50-day average. If you invest, focus on cash conversion, leverage, and order intake quality.
Final Thoughts
Seatrium’s full-year profit doubling to S$323.6 million and a S$0.03 proposed dividend mark a clear step-up in performance. The Seatrium share price sits above its 50-day and 200-day averages, with S$2.09 support and S$2.59 resistance as near-term markers. Valuation on P/E looks demanding, but P/S and P/B are more moderate if margins keep improving. Key watchpoints are execution on large projects, working capital swings, and interest coverage. For short-term traders, momentum and levels matter most. For long-term investors, focus on order quality, cash generation, and leverage trends. A measured approach, updated with each milestone, can help balance opportunity and risk.
FAQs
Why did Seatrium earnings double this year?
Management cited higher revenue recognition from ongoing projects, associate gains, and lower finance costs. TTM data supports improved profitability, with revenue up about 26.6% and better gross profit. Execution discipline and milestone deliveries were key. Investors should watch if these supports persist through 2025 to sustain earnings growth.
What is the Seatrium dividend and implied yield now?
The board proposed a final Seatrium dividend of S$0.03 per share. On the latest close of S$2.21, that implies an indicative yield near 1.36%. Actual cash received depends on eligibility dates. Yield could change with price moves, so check the ex-dividend date and any updates from the company.
Is S51.SI stock attractive after the results?
The setup looks constructive, with profit doubling and a dividend signalling confidence. Valuation on P/E is rich near 32.5x, while P/S and P/B appear moderate. Thin margins and low interest coverage are risks. A staged entry around support levels may suit investors seeking exposure to improving fundamentals.
What levels matter most for the Seatrium share price?
Watch S$2.09 (50-day average) as first support and S$1.75 (200-day) as trend support. On the upside, S$2.59 is the 52-week high. A firm close above S$2.59 could extend momentum, while a drop below S$1.75 would weaken the longer-term trend.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.