ST Engineering *Official* (SGX: S63)

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653
ST Engineering posts 14% fall in H2 profit

ST Engineering posts 14% fall in H2 profit

https://www.businesstimes.com.sg/companies-markets/st-engineering-posts-14-fall-in-h2-profit

SINGAPORE Technologies Engineering (ST Engineering) posted on Friday a 14 per cent fall in net profit for the half year ended Dec 31 to S$264.4 million from S$308.6 million a year ago.

Revenue for H2 FY2020 also slipped 18 per cent to S$3.6 billion from S$4.4 billion. ST Engineering said this was largely due to Covid-19, which led to a reduction in customer demand, supply chain challenges and workforce disruption.

Earnings per share for the full year was also lower at 16.74 Singapore cents, down from 18.53 cents last year.

Net profit for the full year fell 9.7 per cent, to S$521.8 million from S$577.9 million, while revenue for FY2020 dipped 9 per cent to S$7.16 billion from S$7.87 billion the previous year.

A final dividend of 10 Singapore cents per share was declared for the half year. Combined with an interim dividend of five cents, this brings the full-year dividend to 15 cents. The final dividend will be paid out on May 7, after books closure on April 29.

The aerospace sector performed the worst among all its business arms, registering a 28 per cent fall in FY2020 net profit to S$192.9 million from S$268.9 million for the previous year.

Group president and chief executive officer of ST Engineering Vincent Chong said he expects the downtrend to continue in 2021.

"The aviation industry remains subdued and is unlikely to recover to pre-pandemic levels in 2021," said Mr Chong.

"Nevertheless, we are focusing on delivering our order book, seizing new opportunities in areas like freighter conversions and cybersecurity. With partial revenue recovery, when combined with savings from our cost reduction initiatives, we target to offset the effects of lower government support in 2021."

Shares of ST Engineering last traded at S$3.74, down 0.8 per cent or S$0.03 at Thursday's closing.
 

5408854088

High Supremacy Member
Joined
Apr 3, 2007
Messages
32,048
Reaction score
29
ST-Engineering-Revenue-Breakdown-2020.jpg


ST-Engineering-Net-Profit-Breakdown-2020.jpg


https://blog.seedly.sg/st-engineering-sgx-s63-earnings
 

5408854088

High Supremacy Member
Joined
Apr 3, 2007
Messages
32,048
Reaction score
29
Singapore, 22 March 2021 - Singapore Technologies Engineering Ltd (“ST Engineering”), a company incorporated in Singapore and listed on the Singapore Exchange (SGX-S63 / Bloomberg-STE:SP), today announced that it has delivered to the Board of Directors of Cubic Corporation (“Cubic”), a company incorporated in Delaware and listed on the New York Stock Exchange (NYSE-CUB), a proposal to acquire all of Cubic’s outstanding stock for US$76 per share in cash (the “Proposed Transaction”).

The Proposed Transaction represents a premium of 8.6% compared to the US$70 per share in cash agreed to by Cubic with an affiliate of Veritas Capital and Evergreen Coast Capital Corporation which was announced on 8 February 2021. ST Engineering is confident that its Proposed Transaction represents a superior proposal to the Veritas/Evergreen transaction.

Cubic’s Transportation Systems (“CTS”) business is an excellent fit with ST Engineering’s strategy to pursue growth in the Smart City domain, including mobility and transportation systems. CTS is a market leader in the intelligent transportation solutions and payments industry.

In particular, ST Engineering intends for CTS to be the global headquarters of its Smart Mobility business and to continue to be based in San Diego, California, U.S. ST Engineering intends to invest in CTS and retain the “Cubic” brand. We will further strengthen Cubic’s leading position in digital mobility payments and smart mobility applications by combining the best technology and talent from both organisations.

https://www.stengg.com/en/newsroom/...ubic-corporation-for-us-76-per-share-in-cash/
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653
ST Engineering makes competing bid for Cubic Corp at US$76 per share

ST Engineering makes competing bid for Cubic Corp at US$76 per share

https://www.businesstimes.com.sg/co...ompeting-bid-for-cubic-corp-at-us76-per-share

SINGAPORE Technologies Engineering (ST Engineering) on Monday said it has delivered to the board of New York-listed Cubic Corporation a proposal to acquire all its outstanding stock at US$76 per share in cash.

The proposed deal represents a premium of 8.6 per cent over the US$70-per-share in cash agreed to by Cubic with an affiliate of Veritas Capital and Evergreen Coast Capital Corporation, announced on Feb 8, 2021.

ST Engineering said it is "confident" that its offer represents a superior proposal to the Veritas/Evergreen transaction.

It added that Cubic's transportation systems (CTS) business is an excellent fit with ST Engineering's strategy to pursue growth in the smart-city domain, including mobility and transportation systems. CTS is also a market leader in the intelligent transportation solutions and payments industry.

ST Engineering plans for CTS to be the global headquarters of its smart mobility business and to continue to be based in San Diego, California. ST Engineering also plans to invest in CTS and retain the "Cubic" brand.

ST Engineering has partnered with affiliates of Blackstone that will acquire Cubic's mission and performance-solutions defence business immediately following its acquisition of Cubic.

The transaction will be subject to customary closing conditions, including anti-trust and foreign direct investment approvals.

ST Engineering expects to sign definitive agreements and obtain regulatory approvals quickly. The proposed deal is not subject to any financing condition.

The proposed transaction and the sale of the defence business to Blackstone will require ST Engineering shareholders' approval. ST Engineering's major shareholder Temasek plans to execute a voting agreement to vote in favour of the transactions.

Cubic's board is considering ST Engineering's proposal, and has determined that it is, or would reasonably be expected to lead to, a "superior proposal".

Morgan Stanley is the financial advisor to ST Engineering, while Latham & Watkins LLP is ST Engineering's legal counsel.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653

ST Engineering buyout bid fails as Cubic opts for rival proposal​


https://www.businesstimes.com.sg/co...ut-bid-fails-as-cubic-opts-for-rival-proposal

SINGAPORE Technologies Engineering's (ST Engineering) proposed buyout of New York-listed defence and transport technology firm Cubic Corporation has fallen through, with Cubic instead accepting a proposal from Veritas Capital and Evergreen Coast Capital Corporation.

On Wednesday, Cubic announced its acceptance of Veritas and Evergreen's proposal to raise their offer for the pending acquisition of Cubic to US$75 per share in cash. The company has entered into an amendment to its previously-announced definitive agreement with affiliates of Veritas, for the acquisition.

The all-cash transaction is valued at about US$3 billion, including the assumption of debt.

On Tuesday, ST Engineering had raised its offer to US$78 per share, up from US$76 previously. In its Wednesday statement, Cubic said its Board "gave due consideration" to the revised proposal from ST Engineering.

"The Board determined that, based on the superior certainty and anticipated timing of closing the existing transaction with Veritas and Evergreen, the revised proposal from Veritas and Evergreen was in the best interests of all Cubic's shareholders," it said.

The Board recommends that the company's shareholders adopt the amended agreement. Cubic "has ceased engagement with ST Engineering in accordance with the terms of the amended agreement".

ST Engineering shares closed down S$0.01 or 0.26 per cent at S$3.89 on Wednesday.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653
Brokers' take: RHB raises target price on ST Engg to S$4.50, maintains 'buy' call

https://www.businesstimes.com.sg/co...t-price-on-st-engg-to-s450-maintains-buy-call
RHB has raised its target price on ST Engineering (STE) to S$4.50 from S$4.25 previously, while maintaining its "buy" call.

In a report on Monday, the research team cited STE's "high order book with more than two years of revenue visibility, its ability to sustain dividend payments, and potential growth momentum from defence business and Smart City initiative" as reasons for supporting the call on the stock.

This comes after STE last week was awarded a contract in partnership with Oshkosh Defence to produce prototypes for the US Army's cold weather, all-terrain vehicle. Currently, defence accounts for close to one-third of STE's revenue.

Despite the risk of economic recovery stalling if the Covid-19 pandemic is not contained, RHB analyst Shekhar Jaiswal highlighted that STE's "well-diversified business will find interest with defensive investors in a risk-off situation".

He also noted that for growth-seeking investors, a stronger economic recovery could further boost STE's earnings through "higher order wins and earlier-than-expected recovery in its aviation maintenance, repair and operations business".

According to the report, STE's order backlog stood at S$15.4 billion, which implies a book-to-bill ratio of 2.2 years as at end-2020. Of this amount, S$5.3 billion of the order book value is expected to be delivered in 2021, an equivalent of 71 per cent of RHB's revenue estimate, Mr Jaiswal said, noting this implies "strong order wins and a high outstanding order book".

Last month, STE's proposed buyout of New York-listed defence and transport technology firm Cubic Corporation fell through, with Cubic accepting Veritas Capital and Evergreen Coast Capital's proposal instead. Although the proposed acquisition did not materialise, Mr Jaiswal remains optimistic about STE's earnings recovery in 2021, "aided by normalisation of order delivery across business segments".

STE shares fell 0.5 per cent or S$0.02 on Monday to close at S$3.97.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653

ST Engineering's share price weakness presents buying opportunity: RHB​

https://www.theedgesingapore.com/ca...rice-weakness-presents-buying-opportunity-rhb
RHB Group Research analyst Shekhar Jaiswal has kept “buy” on Singapore Technologies Engineering (ST Engineering) with a target price of $4.50, representing an 18% upside on the counter’s share price of $3.80 at close on May 24.

The current weakness in ST Engineering’s share price is an opportunity for investors to accumulate more shares in the group, says Jaiswal, who remains positive on ST Engineering’s earnings outlook.

“This is based on its growing defence business, gradual return in demand for commercial aerospace maintenance, repair and overhaul (MRO) business, which relies more on narrow body aircraft and higher demand for passenger-to-freighter (P2F) conversions amidst international aviation demand’s slower return,” he writes in a report dated May 25.

“Strong revenue visibility amidst high order book and ability to sustain dividend payments are also a positive,” he adds.

ST Engineering’s recent plans to set up a 50:50 joint venture (JV) with Temasek Holdings for freighter aircraft leasing offers “excellent growth opportunities” amid the ongoing e-commerce boom, capacity constraints in air cargo and declining cost of aircraft feedstock, says Jaiswal.

ST Engineering’s new passenger-to-freighter (P2F) orders on May 19, where it signed a letter of intent (LOI) to lease up to five Airbus A321 P2F aircraft to Global Crossing Airlines (GlobalX), as well as its steady contract wins, is also another plus for the counter.

“While there has been a change in the segment reporting, ST Engineering reported $1.55 billion of order wins in 1QFY2021 versus $1.57 billion of order wins in 1QFY2020 and $1.34 billion of order wins in 4QFY2020,” writes Jaiswal.

“As at end 1QFY2021, ST Engineering’s order backlog stood at $15.7 billion, which implies a book-to-bill ratio of over two years. As at the start of 2021, $5.3 billion of the orderbook was expected to be delivered in 2021, an equivalent to 71% of our revenue estimate,” he adds.

As at 12.38pm, shares in ST Engineering are trading 3 cents higher or 0.8% up at $3.84.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653

Brokers' take: CGS-CIMB raises ST Engineering target price as aerospace sector recovers​


https://www.businesstimes.com.sg/st...ing-target-price-as-aerospace-sector-recovers
CGS-CIMB has maintained "add" on Singapore Technologies (ST) Engineering and increased its target price to S$4.41 from S$4 in a report released on July 3.

Analyst Lim Siew Khee attributed this to the recovery of the aerospace sector as Airbus gradually ramps up production of aircraft and US domestic travel recovers to pre-pandemic levels.

In the report, Ms Lim noted that the US Transportation Security Administration (TSA) expects summer travel volumes to rise, while average airport throughput in the US has increased to 75 per cent of pre-pandemic levels. Some airports are even seeing passenger travel volumes exceed 2019 travel volumes.

As such, she expects demand for airframe maintenance, repair and overhaul (MRO) services to pick up in the US, contributing to an increase in the engineering conglomerate's earnings per share between FY2021 and FY2023 by 5 to 6 per cent on stronger revenue and margins from ST Engineering Commercial Aerospace.

"Relative to Singapore peer SIA Engineering which depends predominantly on Singapore Changi Airport's throughput and SIA load factor, ST Engineering's presence in the US is the key differentiating factor for an earlier recovery to pre-Covid-19 levels, in our view," Ms Lim said, adding that she expects ST Engineering Aerospace's revenue to reach 86 per cent of pre-pandemic levels in FY2021 on the back of global operations in US, Europe and China.

Furthermore, ST Engineering Commercial Aerospace's production of engine nacelle under its US subsidiary MRA Systems is also set to recover as Airbus gradually ramps up its monthly production of A320 aircraft, Ms Lim said.

In May, Airbus increased A320 aircraft target production to 45 per month by Q4 of 2021, up from the current 40 per month, and 64 per month by Q2 of 2023.

In a business update in May this year, the group announced that its order book stood at S$15.7 billion in March 2021, a level higher than pre-Covid-19 figures. Ms Lim expects the group's order book to breach S$16.5 billion by the end of the FY2021.

Aside from commercial aerospace, Ms Lim also expects the group to grow its presence in international defence. She noted that ST Engineering's US VT Halter Marine arm was awarded a US$149 million contract from the US Department of Defense for the design and construction of an oceanographic survey ship in June.

Partnering US tactical vehicle manufacturer Oshkosh Defense, ST engineering is also competing with BAE Systems to supply two prototypes for US Army Cold Weather All-Terrain Vehicle (CATV). The US Army will issue a follow-on production contract for up to 200 CATVs and US$1.6 million per vehicle in FY2022 to the successful bidder.

Despite the smaller contract size, Ms Lim believes that it would build ST Engineering's "presence and reputation in the international defence space".

An investor day in the second half of 2021 could also fuel investor interest and shed some light on the group's reorganisation into two main clusters: commercial, and defence and public security, she said.

The group had plans in 2018 to double its annual revenue by 2022 from S$1 billion at the time. Since then, progress has been made over the years with smart city revenue rising to S$1.4 billion in 2019, even as the Covid-19 pandemic could yet disrupt the group's revenue targets.

"Nonetheless, we think it is timely for the group to reorganise segments and resources preparing for a post-Covid-19 recovery," Ms Lim said.

ST Engineering’s shares closed up 1.30 per cent at S$3.90 on Monday.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653

BBAM and ST Engineering JV announce order for Airbus A320/A321P2F Conversion​


https://www.theedgesingapore.com/vi...-announce-order-airbus-a320a321p2f-conversion
BBAM Limited Partnership (BBAM) an aircraft leasing company, and Elbe Flugzeugwerke (EFW), a joint venture between ST Engineering and Airbus, announced on Aug 16 an agreement for Airbus A320/A321 Passenger-to-Freighter (P2F) orders including options. The new orders by BBAM bring the total number of its A320/A321P2F to no less than 20, with the conversions to be carried out by EFW through 2025. The agreement comes with the option to add new conversion slots every year starting in 2026. The agreement comes with the option to add new conversion slots every year starting in 2026.

In January this year, BBAM announced the delivery of the world’s first Airbus A321P2F on lease to Titan Airways.

The Airbus A320/A321P2F offers containerised loading in both the main deck (up to 14 full container positions) and lower deck (up to 10 container positions). The aircraft has a payload-range capability of more than 28 metric tons.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
320,183
Reaction score
80,653

ST Engineering, Siemens Mobility consortium snags $180m rail lines contract​

The contract is worth $180m.

https://sbr.com.sg/transport-logist...ity-consortium-snags-180m-rail-lines-contract
ST Engineering and Siemens Mobility Consortium announced that they were awarded a $180m contract focusing on the communications system for Singapore’s rail news.

The two companies will work on the modernisation and renewal of the comms systems for Singapore’s North-South, East-West Lines, and Bukit Panjang LRT.

Chew Men Leong, President of Urban Solutions at ST Engineering, sees this as an opportunity to upgrade Singapore’s rail network.

“The NSEWL and BPLRT are the most heavily utilised lines in Singapore’s rail network. Collectively with our partner, we provide deep technical and domain expertise to ensure zero disruption while deploying the new communications systems to the existing systems and train services.”

The new system is expected to be fully operational in 2029.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top