New Seatrium call warrant to trade potential rebound from 13-month low
📉Yesterday, $Seatrium Ltd(5E2.SI)$ shares closed at $1.96, its lowest level since 6 May 2025, adding to its 22% share price loss since April 2026
Seatrium has sharply underperformed, falling 6% over the past year compared to the 33% gain in the benchmark index and 56% surge in peer Keppel
According to Bloomberg AskB, Seatrium's price action over the past year has been driven almost entirely by P/E de-rating, not Seatrium's earnings deterioration
Seatrium's current 13x forward P/E represents a meaningful discount to Keppel and reflects the market's scepticism on near-term order momentum (Bloomberg)
📢Seatrium provided a first quarter business update two weeks ago on 29 May, reporting a net order book of S$15.5 billion across 24 projects, with deliveries stretching through to 2033
The management noted no significant cost increase, and that it continues to expect margin improvement
However, order wins were described as muted amid a more competitive environment
Meanwhile, analysts have been concerned with the slow conversion of projects in the pipeline - worth S$32 billion - into contract wins (Dow Jones)
✳Macquarie's newly listed Seatrium warrant $Seatrium MB eCW261230(UGWW.SI)$ (https://warrants.com.sg/tools/livematrix/UGWW) costs S$0.013 while Seatrium trades at $1.95, and moves approximately 4.7% for a 1% move in Seatrium shares, based on its effective gearing level this morning as of 9AM
Investors can therefore consider using UGWW to trade any potential rebound of Seatrium shares from current levels
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