ST Engineering *Official* (SGX: S63)

dexboi

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● We believe STE's 18% share price decline in the past month is overdone and ignores its resilient military business which represents one-third of sales as well as strong orderbook of S$12.4 bn that should provide significant earnings visibility.

● While we were previously concerned about its China, Brazil and commercial aerospace exposure, we believe this have now been priced in as remaining goodwill in Brazil is S$3 mn, and consensus earnings estimates have been brought down and do not seem to incorporate a turnaround in Aerospace.

● STE has a strong balance sheet, with a net cash position of

S$460 mn as at June 2015. However, we expect potential headwinds for Marine with lower oil prices driving a decline in orders, and for Land Systems with further writedowns in China.

● STE is currently trading at a current P/B of 3.9x, below its 08-09 low of 4.3x. Its 2016E P/E of 15.5x is close to one standard deviation below its historical average. We expect its share price to be supported by its attractive dividend yield of 5.4%. Upgrade to NEUTRAL.

If you wanna kope writeups, please at least credit where it came from. Looks like the one from CS.
 
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● We believe STE's 18% share price decline in the past month is overdone and ignores its resilient military business which represents one-third of sales as well as strong orderbook of S$12.4 bn that should provide significant earnings visibility.

● While we were previously concerned about its China, Brazil and commercial aerospace exposure, we believe this have now been priced in as remaining goodwill in Brazil is S$3 mn, and consensus earnings estimates have been brought down and do not seem to incorporate a turnaround in Aerospace.

STE has a strong balance sheet, with a net cash position of

S$460 mn as at June 2015.
However, we expect potential headwinds for Marine with lower oil prices driving a decline in orders, and for Land Systems with further writedowns in China.

● STE is currently trading at a current P/B of 3.9x, below its 08-09 low of 4.3x. Its 2016E P/E of 15.5x is close to one standard deviation below its historical average. We expect its share price to be supported by its attractive dividend yield of 5.4%. Upgrade to NEUTRAL.

they have no debt right?
 

dork32

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i remember someone said st eng have no hope of recovery. it is doomed.
 

dork32

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Here not value buddy forum wor

I got share very good liao, u all still wanna be picky lol

the stuff you write is not bad lah. I add a bit of my own knowledge and I will know whether is makes sense or not. most of the time it does.
 

Perisher

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Here not value buddy forum wor

I got share very good liao, u all still wanna be picky lol

Actually he is right, please credit the original source...

Note to everyone, including myself, it's not allowed to grab other articles to post here wholesale, just part of it is ok though but please credit source.

:)
 

ValueInvestor

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Actually he is right, please credit the original source...

Note to everyone, including myself, it's not allowed to grab other articles to post here wholesale, just part of it is ok though but please credit source.

:)

ok sure, next time i will include the report from which house de

cause i sometimes lazy, just copy and paste if I see something interesting
 
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