Moving in the right wind direction
? SMM announced its first contract for the year, the company’s first wind
turbine installation vessel. The vessel is scheduled for delivery in 2025.
? Given the lead time of construction, we believe the contract to worth US$300-
500m based on the latest transactions by Keppel, China and Korean yards.
? We believe this project could yield 5-6% EBIT margin as it is SMM’s first.
? Order book stood at S$1.3bn at end-21 and we project S$2bn order wins for 2022. Its share price could react positively. Reiterate Hold, TP of S$0.09.