$Seatrium(5E2.SG)

Context:

Seatrium has been showing a pretty clear turnaround story, with 1H26 net profit jumping 158% YoY and margins continuing to improve. The company also has a S$13.3b order book, so there is still decent visibility on future revenue.

My trade:

I’m trading Seatrium mainly for the momentum and turnaround story. The earnings improvement gives me a fundamental reason to stay interested, while the strong order book and improving margins give the stock room to rerate if execution continues. I’m not treating it like a buy-and-hold dividend stock, more of a swing trade where I’m looking to ride the recovery and take profit when the momentum starts to weaken.

Takeaway:

Seatrium is no longer just a recovery story the numbers are starting to show the improvement. But at the same time, expectations are higher now, so I’d rather trade the momentum and manage my entry/exit than chase the stock after a big run. The next catalysts I’m watching are new order wins, margin expansion and further share buybacks. Analysts have also highlighted sizeable order wins and stronger margins as potential re-rating catalysts