ST Engineering(Singapore
Technologies Engineering Ltd) is an integrated engineering group providing solutions and
services in the
aerospace, electronics, land systems and marine sectors.
Headquartered in
Singapore, the Group reported revenue of $6.54b in
FY2014 and ranks among the largest
companies listed on the Singapore Exchange. It is a component stock of the FTSE
Straits Times Index and MSCI Singapore. ST Engineering has about 23,000
employees worldwide, and over 100 subsidiaries and associated companies in 46 cities
across 24 countries. Please visit www.stengg.com for more information.
9M2015 versus 9M2014
Group revenue for 9M2015 was $4.56b
compared to $4.69b for the same nine-month period last year.
Group PBT and Net
Profit were comparable at $463.7m and $388.2m
respectively against the same
nine-month period last year.
For the nine-month period, Aerospace
and Land Systems sectors posted comparable year-on-year revenue of $1.51b and
$982.5m respectively, and comparable year-on-year PBT of $205.3m and $52.3m
respectively
. The Electronics sector’s revenue
of $1.20b was 9% higher compared to
$1.10b in the same nine-month period a year ago,and its PBT was comparable at $130.8m
over the same period last year.
Year-on-year
Revenue and PBT for the Marine
sector dropped 27% and 22% respectively to $738.1m and $68.9m respectively for the
nine-month period.
“For the third quarter as well as
the first nine months of 2015, the Group reported year-on-year comparable Revenue and PBT.
The Group continues to face
challenges with our Aerospace sector's Maintenance,Repair and Overhaul business
experiencing prolonged softness in activities. Shipbuilding performance remains weak both
locally and in the US, but the diversity of our businesses and appreciation of the
USD helped to cushion impact on the Group's performance.
Barring unforeseen circumstances,
the Group expects FY2015 Revenue to be
comparable, while PBT is expected to
be lower than that of FY2014.”
(http://infopub.sgx.com/FileOpen/ST%20Engineering-HL-PR-SGXNet-3Q2015.ashx?App=Announcement&FileID=376913)
Order Book and New contracts
Announced in 3Q2015
The Group maintained a healthy order
book of $12.2b at the end of 3Q2015. It expects to deliver about $1.4b of the order
book in the remaining months of 2015.
For 3Q2015, the Group announced
about $780m worth of contracts. Of these, $410m was from the Aerospace sector and
$370m from the Electronics sector.
New order secure after 3Q2015 of about $1.17B
Singapore, 4 January 2016 - Singapore
Technologies Engineering Ltd (ST Engineering)
announced today that its marine arm,
Singapore Technologies Marine Ltd (ST Marine) has
secured new orders worth about $344m
for its Shiprepair and Engineering business groups
in the fourth quarter of 2015.The contracts
cover major upgrades, conversion, maintenance and repair of vessels in the naval
and commercial segments. These vessels include patrol vessels, pipe-laying
vessel, accommodation & work barge, oil & chemical tankers, and
a cruise ship.The new orders also
included logistics management services.
Singapore, 13 January 2016 – Singapore Technologies
Engineering Ltd
(ST Engineering) announced today that its electronics arm,
Singapore Technologies
Electronics Limited (ST Electronics) has secured about $435m
worth of contracts in the
fourth quarter (4Q) of 2015 for Rail Electronics & Intelligent
Transportation, Satellite &
Broadband Communications, as well as Advanced Electronics
& Information
Communications Technologies (ICT) solutions.
Singapore, 19 January 2016 – Singapore Technologies
Engineering Ltd
(ST Engineering) today announced that its aerospace arm has
secured new contracts
worth $415m in the fourth quarter (4Q) of 2015, for projects
ranging from airframe
maintenance and cabin interiors reconfiguration, to engine
wash and landing gear overhaul.
ST Engineering is perhaps one of the defensive counter that is doing well in the current context of market volatility. The price is fluctuating between $2.68 to $3.05 for the past few months.
From TA point of view it is still rather bearish but it is gaining strength to move out from this bearish mode.
Both MACD and RSI are showing sign of a positive divergence and hopefully this may provide further indication for the share price to head higher to cross over $2.81 in order to trend higher towards 2.90 with extension to 3.05.
Cash and cash equivalents including funds under management totalled
$1.4 billion.
Advance payments from customers totalled $1.6 billion as of 3Q2015.
With such a strong and well established company that is capable of securing new contracts even in the midst of the not so rosy economy. Profitable and has been consistently paying out dividends of above 5% p.a.
This could well be considered for a good defensive play investment.
EPS is about 17 cents. Current price of $2.74 is about PE 16.11 times.
Perhaps a short term Target price of $3.30 (PE 19.4 times) is fairly achievable in time to come.
The company is due to report its 4Q2015/Full year result on 26th February 2016.
Hopefully we can expect the company to announce the Final dividend of 11 cents for Full Year 2015 result(same as 2014). Together with Interim dividend of 5 cents , the total dividend will be 16 cents that may be able to achieve a yield of above 5% base on current price of $2.74.
(trade base on your own decision)
