Investors often ask management about the business’s long-term plans during annual general meetings.
This question frequently pops up as a way for investors to understand the company’s prospects and how management thinks about growing the business.
Of late, several blue-chip companies have detailed their plans and objectives during Investor Day events.
Such events allow investors to obtain a clear understanding of the steps that the business will take to achieve its goals and provide clarity on longer-term goals.
Here are three Singapore blue-chip stocks that recently held their Investor Day sessions, so let’s review their plans and summarise where they are headed for the future.
Seatrium Ltd (SGX: 5E2)
Seatrium provides innovative solutions to the global offshore, marine, and energy industries.
The group designs and constructs rigs, floaters, offshore platforms, and specialised vessels.
Seatrium held its 2024 Investor Day back in March titled “Towards profitable and resilient growth”.
First off, the group intends to expand its technology and intellectual property (IP) capabilities.
Armed with more than 700 patents, Seatrium has built more than 200 proven products and has strong relationships with customers such as Maersk, BP (LON: BP), and Chevron (NYSE: CVX).
Management has set a target of achieving more than S$1 billion in EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 2028.
The group’s return on equity is also projected to exceed 8% in four years.
Seatrium has identified S$300 million of annualised synergies and cost savings that can be achieved with standardised pricing with customers, asset rationalisation, and a reduction in corporate overheads.
In addition, more efficient centralised procurement will lead to S$200 million in procurement savings.
Seatrium also identified opportunities to grow in the repairs and upgrades market with a market size of around S$20 billion to S$30 billion per annum.
The group’s recent first half of 2024 (1H 2024) results were encouraging as it reported an underlying net profit of S$115 million.
Underlying EBITDA also soared from just S$36 million in 1H 2023 to S$390 million and Seatrium secured a decade-high order book of S$26.1 billion.
Keppel Ltd (SGX: BN4)
The next company to host its Investor Day recently is asset manager Keppel Ltd.
The group released its Investor Day 2024 slides late last month that provided an update on its progress towards its Vision 2030 objectives.
Investors who are interested in last year’s Investor Day can check out some highlights of this event here.
Management identified favourable global megatrends that should see investors putting money in asset classes that will benefit from such trends.
These include energy transition and climate change, rapid urbanisation amid an ageing population, and increasing digitalisation.
Keppel is well-positioned to take advantage of these trends and will work to accelerate the growth of its funds under management (FUM) through both organic and inorganic strategies.
1H 2024 saw FUM at S$85 billion and the target is to grow this to S$200 billion by 2030 by scaling existing flagship products, seeking synergistic inorganic growth (i.e. acquisitions), and investing in new growth engines.
Its recent acquisition of European asset manager Aermont Capital is one such method that has helped FUM to grow.
The group’s strategy is to raise capital while optimising its portfolio, create deal flow and build a quality pipeline, and drive superior asset performance and favourable investment outcomes.
For 1H 2024, Keppel saw net profit from continuing operations rise 7% year on year to S$513 million and declared an interim dividend of S$0.15 per share.
Singtel (SGX: Z74)
Singtel has also released its recent Investor Day 2024 slides, helping to crystallise its plans and laying the groundwork for its ST28 strategic goals.
Investors can check out last year’s Investor Day highlights when the telco presented its progress for its strategic reset.
Singtel plans to drive top-line growth for both its Singtel Singapore and Optus divisions.
For Singtel Singapore, the group will drive enterprise expansion with new services and global wins.
Optus will build on positive mobile pricing trends and build its enterprise business to capture growth.
Singtel’s Digital InfraCo division, which comprises Nxera, its data centre division, aims to scale its data centre portfolio to more than 200 MW by 2026.
The plan is to double Nxera’s EBITDA by 2028.
At the group level, Singtel is targeting S$200 million of cost savings in fiscal 2025 (FY2025).
This will be delivered through workforce optimisation, digitalisation, and automation.
Corporate costs should see a mid-term reduction of 20%.
Singtel has also set a S$6 billion recycling target in the mid-term.
The group reiterated its revised dividend policy which promises core dividend growth and a value realisation dividend component funded by excess capital from capital recycling efforts.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
