SeatriuM: Orderbook burn out outruns the margin turn; we assume coverage at UW

Research evidence excerpt

SeatriuM: Orderbook burn out outruns the margin turn; we assume coverage at UW

J P M O R G A N Asia Pacific Equity Research

28 July 2026

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Seatrium ▼Underweight

Previous: Overweight

Orderbook burn outruns the margin turn; we assume SEAT.SI, STM SP

Price (28 Jul 26):S$2.36

coverage at UW ▼Price Target (Dec-27):S$1.60

Prior (Dec-26):S$3.05

We assume coverage of Seatrium (STM SP) with an Underweight rating and Dec- Singapore/ASEAN Property and

27 PT of S$1.60, implying 32% downside from the current price of S$2.36 on 28 REITs

July 2026. We believe the market underestimates orderbook replacement risk. Terence M Khi AC

Petrobras FPSOs accounted for 58% of 2022-25 contract wins and 66% of 1Q26 (65) 6882-1518

gross orderbook, but Petrobras (covered by Milene Carvalho, link) is shifting terence.ml.khi@jpmorgan.com

toward BOT structures that increases competition and dilutes STM’s scope J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

capture. Despite assuming S$7bn/S$6bn/S$5bn of contract wins in FY26/27/28 Morgan Broking (Hong Kong) Limited

and margin improvement, we forecast core PATMI of S$474m in FY26E to decline Mervin Song, CFA

to S$414m in FY28E. STM is up 14.2% over the past five days, ahead of STI’s 1.2% (65) 6882-7829

rise, following the largely expected 1H26 positive profit alert for results on 31 July. mervin.song@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited/