US$25bn Opportunity, Awaits Execution; UW

Research evidence excerpt

US$25bn Opportunity, Awaits Execution; UW

Update

July 31, 2026 02:47 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MSeatrium Limited | Asia Pacific Mayank Maheshwari

Equity Analyst

US$25bn Opportunity, Awaits Mayank.Maheshwari@morganstanley.comRyan M Heng +65 6834-6719

Ryan.Heng@morganstanley.com +65 6834-6465

Execution; UW Vivek Rajamani

Vivek.Rajamani@morganstanley.com +65 6834-6740

AlphaSignals Earnings Reaction Morgan Stanley India Company Private Limited+

Weakens our thesis In-line Largely unchanged Pranitha Shetty

Impact to our thesis Financial results versus consensus Direction of next 12-month Research Associate

consensus EPS Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Source: Company data, Morgan Stanley Research Hinal Choudhary

Research Associate

Hinal.Choudhary@morganstanley.com +91 22 6118-2044

Key Takeaways

Core earnings were in-line with MSe with commendable EBITDA margin

improvement, however with ~1.3yr revenue implied orderbook, durability is key.

Core EBITDA margins at 8.5% is in-line with our F26 runrate and reflects

management's focus on realising synergies and reduced drag from low-margin Seatrium Limited (SEAT.SI, STM SP)

orders. ASEAN Energy and Materials | Singapore

Orderbook of S$13.3bn with only ~S$100mn conversion/repair wins in 2026. Stock Rating Underweight

Industry View Attractive

Pipeline opportunities of S$32bn were flat HoH but limited translation to new Price target S$1.85

orders. Up/downside to price target (%) (13)

Shr price, close (Jul 30, 2026) S$2.12

What we liked? Net debt ~S$0.68bn and flattish interest cost of 3.5% HoH; Sh out, dil, curr (mn) 3,401

Mkt cap, curr (mn) S$7,210

higher mix of fixed-rate debt and longer maturity. UW on orderbook durability. EV, curr (mn) S$7,541

Avg daily trading value (mn) S$30