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Old 14-08-2015, 01:08 PM   #166
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Thought they wanted to lower divvy?
They probably changed their mind and increased dividend after seeing how their stock price came under pressure after the ill-advised dividend guidance.LOL
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Old 14-08-2015, 03:19 PM   #167
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If earnings keep dropping yet stock price goes up
Maybe its a chance to get out

If got 3.4 maybe i zhao liao lol
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Old 14-08-2015, 08:06 PM   #168
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felix, i thght u love STEng?
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Old 14-08-2015, 11:54 PM   #169
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Lower earnings can give 5.0 cents dividend???

Did i miss something?
pay using their cash pile lor.

their shrinking cash pile.
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Old 15-08-2015, 08:11 AM   #170
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2Q15 RESULTS WITHIN FORECAST
 1H NPAT met 47% of forecast
 2H to be better than 1H
 Decent yield of 4.6%
2Q15 results within forecast
STE saw 2Q15 revenue slipping 2.6% YoY to S$1545.1m, mainly due to lower Marine revenue, but mitigated by higher revenue from Electronics and Land Systems sector. Reported net profit fell 6.1% to S$125.0m, but we estimated that core earnings (excluding forex and other one-off items) fell by a smaller 4.9% to S$135.3m. 1H15 revenue also fell 2.6% to S$3056.5m, meeting 46% of our full-year forecast, while reported net profit was down 5.7% at S$255.0m, meeting 47% of our FY15 forecast. STE declared an interim dividend of S$0.05/share (ex-date: 19 Aug), versus S$0.04 the same period last year.
PBT improvement in Marine sector
The Marine sector continued to see lower revenue in 2Q15, dropping by a larger 27% YoY (also down 9% QoQ) to S$253.9m, mainly due to lower Shipbuilding revenue from both local and US operations and lower Engineering revenue. But its PBT actually improved by 20% YoY (+27% QoQ) to S$29.6m, due to higher gross profit from better shipbuilding performance. On the other hand, Land Systems saw its PBT drop 11% YoY (flat QoQ) to S$16.3m, mainly affected by higher allowance for inventory obsolescence and goodwill impairment, despite the 8% YoY (-8% QoQ) rise in revenue.
Keeping FY guidance unchanged for now
Going forward, STE expects 2H15 revenue and PBT to be higher than 1H15. Specifically, Aerospace should see comparable 2H15 revenue and PBT versus 1H15; Electronics revenue and PBT to be higher HoH; Land Systems should see higher revenue but comparable PBT; Marine revenue and PBT are both likely to be lower HoH. But for the full year, STE still expects revenue and PBT to be comparable to FY14. This is not surprising given its current order book of S$12.4b (as of end Jun), of which it expects to deliver about S$2.3b in the remaining months of 2015.
Maintain HOLD with S$3.33 fair value
As we also expect pretty flat earnings growth in FY16, our fair value remains unchanged at S$3.33 even as we roll forward our 19x peg to blended FY15/FY16F EPS. Maintain HOLD, supported by a pretty decent 4.6% dividend yield.

Last edited by ValueInvestor; 16-08-2015 at 09:30 AM..
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Old 15-08-2015, 08:12 AM   #171
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Management says second half will be better than first half
Shall wait and see

If full year results same as last year i will continue to hold

But if earnings bad, say full year earnings down 10% i will throw
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Old 15-08-2015, 11:36 PM   #172
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rly dont foresee second half btr for st eng...
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Old 16-08-2015, 09:33 AM   #173
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Going forward, STE expects 2H15 revenue and PBT to be higher than 1H15. Specifically, Aerospace should see comparable 2H15 revenue and PBT versus 1H15; Electronics revenue and PBT to be higher HoH; Land Systems should see higher revenue but comparable PBT; Marine revenue and PBT are both likely to be lower HoH. But for the full year, STE still expects revenue and PBT to be comparable to FY14. This is not surprising given its current order book of S$12.4b (as of end Jun), of which it expects to deliver about S$2.3b in the remaining months of 2015.
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Old 16-08-2015, 09:48 AM   #174
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Just for discussion sake, i hope this wont spark another fiasco. I'm sure it wont since you've changed ur view on ST Eng (finally).

Going forward, STE expects 2H15 revenue and PBT to be higher than 1H15. Specifically, Aerospace should see comparable 2H15 revenue and PBT versus 1H15; Electronics revenue and PBT to be higher HoH; Land Systems should see higher revenue but comparable PBT; Marine revenue and PBT are both likely to be lower HoH. But for the full year, STE still expects revenue and PBT to be comparable to FY14. This is not surprising given its current order book of S$12.4b (as of end Jun), of which it expects to deliver about S$2.3b in the remaining months of 2015.
Yes, i saw this statement release. However, what did you expect them to say? The price was falling dangerously to 52w low and they had to raise dividend. do you think they have any choice but to make that statement first?
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Old 16-08-2015, 10:08 AM   #175
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not all companies gives forward guidance to their revenues and earnings
in fact a lot of companies don't
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Old 16-08-2015, 10:25 AM   #176
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not all companies gives forward guidance to their revenues and earnings
in fact a lot of companies don't
correct.

but why this statement? seems like it is done to prevent price for falling further. and they have no commitment to fulfill this "promise". after all, it is just talk.

my two cents.
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Old 16-08-2015, 11:04 AM   #177
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correct.

but why this statement? seems like it is done to prevent price for falling further. and they have no commitment to fulfill this "promise". after all, it is just talk.

my two cents.
goes to show u only this year then see STE

every year they got give guidance one.... since the beginning...
that's why investors like STE stock... more predictable
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Old 16-08-2015, 11:06 AM   #178
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goes to show u only this year then see STE

every year they got give guidance one.... since the beginning...
that's why investors like STE stock... more predictable
ok thx................
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Old 17-08-2015, 09:41 AM   #179
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by maybank kim eng

Position for 2016 Rebound; U/G  2Q15 in line. Guidance maintained. No change to EPS.  Beneficiary of USD strength. Aerospace to pick up as global airlines accelerate capacity & slow fleet retirement.  Upgrade to BUY from HOLD with catalysts expected from 2016 rebound. Raise TP to SGD3.85 from SGD3.45 after rollover to FY16, still at 18x EPS. 2Q15 in line; guidance maintained 2Q15 net income of SGD125m (-6.6% YoY) was in line, with 1H at 45% of our FY15F. Its performance would have been stronger if not for SGD6.5m in provision for vehicle stock obsolescence and another SGD4m in goodwill impairment for its commercial vehicle sales business in Brazil under the Land Systems division. Interim DPS was raised by 1.0 SGD cts to 5.0 SGD cts. 2H15 is expected to be stronger due to the absence of one-off losses in the comparable period last year and is backed by SGD2.3b of orders that are expected to be delivered for the rest of the year. Management maintained its guidance for comparable sales and PBT in FY15. Upgrade to BUY; higher SGD3.85 TP USD has strengthened 13% against SGD in the past year. We see translational gains for STE from its US operations (22% of sales) and net P&L exposure to USD. Global airlines are likely to accelerate their capacity deployment in response to lower oil prices and slow fleet retirement. This should eventually lift the maintenance workload for STE’s aerospace division. We believe the Street has yet to factor in these positives and expect earnings upgrades soon. Upgrade to BUY from HOLD. We raise our TP to SGD3.85 from SGD3.45 as we roll over to 18x FY16 EPS, 0.5SD below its 10-year average. The stock is trading at the low end of its historical P/E range. Yields remain attractive at 5% even after we build in lower payout ratios, expecting the cash retained to provide more funds for acquisitions.
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Old 17-08-2015, 09:44 AM   #180
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by CIMB

Delayed gratification At 22% of our FY15 forecast, 2Q15 net profit of S$125m (-4% qoq, -6% yoy) was slightly below expectations. 1H15 net profit formed 44% of our FY15 forecast and 48% of consensus. There is no change in guidance for “comparable” FY15 yoy earnings, driven by stronger Electronics. A higher interim DPS of S$0.05 (1H14: S$0.04) suggests that total DPS could be maintained at S$0.15 for FY15. We cut our FY15-17 EPS on lower Marine profits, in view of the challenging outlook. Maintain Add, with a lower target price, still based on blended DCF, P/E and dividend yield. Relative to its Singapore capital goods peer, STE is still delivering yoy earnings growth, with a decent 4.5% dividend yield. Catalysts could include stronger-than-expected orders across divisions. Aerospace: push to the right; restructuring success Contrary to its peer, SIE that reported a 22% yoy decline in profits, STE’s aerospace profit only dipped 4% yoy to S$71m in 2Q15 thanks to its wide product offering (including PTF conversion), focus on narrow body engines (CFM 56) as well as its diversified customer base. Its PBT would have been 5% higher yoy, at c.S$76m, if not for several one-off events that pushed revenue recognition to the right. These include 1) a delay in STC approval for its 15 palate PTF conversion, pushing conversion slots from 2Q15 to 4Q15, 2) shortage of engine blades for CFM56 and 3) a temporary conflict of contract between Pratt & Whitney and the US Air Force (resolved in 3Q15), postponing engine wash revenue. As such, 2H15 PBT will be comparable to 1H15. We believe the volume pick up will be more evident in 2016 especially from the PTF. The completion of restructuring exercise of its European outfit has worked in its favour as CERO’s PBT margin rebounded to 11.5%, the highest since 2Q13. Aerospace secured a record S$920m worth of contracts in 2Q15, which helped to lift the group’s order book to S$12.4bn (S$12.2bn in 1Q15). Electronics to maintain its +10% yoy increase in profits Electronics delivered a PBT of S$47m in 2Q15 (+35% qoq). In FY15, we expect the division to deliver +10% yoy profit growth, and a stable PBT margin of 11%, a trend since FY12. The steady growth is backed by sustainable S$300m-500m of quarterly new order wins, heightened in the recent two years from communication and software solutions. It won orders worth S$424m in 2Q15.
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