ST Engineering *Official* (SGX: S63)

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TehSi99

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mrclubbie said:

ST Engineering wins $430 million rail services contract in Taiwan​


https://www.straitstimes.com/busine...-430-million-rail-services-contract-in-taiwan
SINGAPORE - ST Engineering obtained a $430 million contract from the Kaohsiung City Mass Rapid Transit (MRT) Bureau in Taiwan, the technology and engineering group said on Friday.

It will lead systems integration and project management for the new Kaohsiung MRT Red Line South Extension. Also known as the Siaogang-Linyuan Line, the 11.27 km line comprises six underground stations and one elevated station.

The project includes providing an automatic fare collection system, platform screen doors and depot equipment, among other services.

ST Engineering Urban Solutions will begin working on the project in mid-2023 over a period of nine years.

When completed in 2030, the Red Line South Extension will run through three national industrial parks in southern Taiwan and connect to Kaohsiung MRT’s existing Red and Orange lines.

The company said the contract will add to ST Engineering Urban Solutions’ global track record of 200 smart metro projects in more than 50 cities.

It will work with its partners to deliver the signalling system and the bulk substation, while Hyundai Rotem, a consortium partner, will provide the rolling stock and power supply.

President of urban solutions at ST Engineering Chew Men Leong said: “This contract builds on our longstanding partnership with the Kaohsiung City MRT Bureau and represents a strong vote of confidence in our project management, systems integration and engineering capabilities.”

In the past two years, ST Engineering Urban Solutions had won contracts to deliver full turnkey rail services for the Kaohsiung MRT Yellow Line and Red Line North Extension as part of consortiums.

ST Engineering shares were trading three cents, or 0.9 per cent, higher at $3.47 as at 10.40 am on Friday, after the announcement. THE BUSINESS TIMES
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Good news but money not so fast come in.
 
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TehSi99

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Trying to figure out the best strategy for this stock. Seems not 100% defensive stock, but it pays stable dividends.
My conclusion is to always buy when price hits a low and hold long term for dividends. They seems to be able to have constant stream of orders no matter how.

Any thoughts?
 
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DevilPlate

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TehSi99 said:
Trying to figure out the best strategy for this stock. Seems not 100% defensive stock, but it pays stable dividends.
My conclusion is to always buy when price hits a low and hold long term for dividends. They seems to be able to have constant stream of orders no matter how.

Any thoughts?
Click to expand...
Monitor and add when lelong.
One of the counter I hardly sell since 2008
 
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lzydata

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Not many companies - okay, no others - have the Chief of Defence Force on their board, and do sensitive work for the SAF. But of course, their business and order book is mostly commercial and they have taken on more debt with the TransCore acquisition.
 
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TehSi99

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lzydata said:
Not many companies - okay, no others - have the Chief of Defence Force on their board, and do sensitive work for the SAF. But of course, their business and order book is mostly commercial and they have taken on more debt with the TransCore acquisition.
Click to expand...

With constant stream of orders, I do not see an issue with their debts if they are able to also manage the cost.
 
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Maybank keeps 'buy' call and $4.10 target price on ST Engineering on expectations of all-round margin improvement​


https://www.theedgesingapore.com/ca...-target-price-st-engineering-expectations-all
In an update note, Maybank Securities analyst Kelvin Tan has maintained his “buy” call and $4.10 target price on Singapore Technologies Engineering.

The engineering conglomerate recently won some $2 billion worth of orders across its three main business segments, lifting its order book to a record of some $25 billion.

“We remain positive on ST Engineering’s ability to deliver 10-15% earnings growth per year between FY2023 and FY2025, driven by revenue and margin improvements across all its business divisions,” writes Tan in his April 10 report.

He notes that ST Engineering is trading at an inexpensive 19x forward PE versus its 10-year historical forward PE of 20x.

The key contracts won recently include one providing maintenance, repair and overhaul services for CFM International, and a $430 million turnkey rail service contract for a Taiwan’s mass rapid transit system.

Last but not least, a contract from Singapore to build six naval vessels.

Besides winning the orders, Tan believes that the company is on track for margin recovery in the current FY2023, reaching an estimated 9.4% by end of the year.

One reason for the better margins should come from reduced integration costs incurred from its recent $2.7 billion acquisition of the Transcore traffic management system provider firm in the US.

Another cost reduction should come from lower energy costs, as well as from stemmed losses from its US shipyard business that have been sold.

The way Tan sees it, ST Engineering remains a long-term investment with strong upside growth.

“More importantly, ST Engineering’s ability to generate strong free cash flow should ease concerns about its elevated debt levels,” adds Tan, who expects the ratio of net debt to equity to improve from FY23 onwards.
 
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TehSi99

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mrclubbie said:

Maybank keeps 'buy' call and $4.10 target price on ST Engineering on expectations of all-round margin improvement​


https://www.theedgesingapore.com/ca...-target-price-st-engineering-expectations-all
In an update note, Maybank Securities analyst Kelvin Tan has maintained his “buy” call and $4.10 target price on Singapore Technologies Engineering.

The engineering conglomerate recently won some $2 billion worth of orders across its three main business segments, lifting its order book to a record of some $25 billion.

“We remain positive on ST Engineering’s ability to deliver 10-15% earnings growth per year between FY2023 and FY2025, driven by revenue and margin improvements across all its business divisions,” writes Tan in his April 10 report.

He notes that ST Engineering is trading at an inexpensive 19x forward PE versus its 10-year historical forward PE of 20x.

The key contracts won recently include one providing maintenance, repair and overhaul services for CFM International, and a $430 million turnkey rail service contract for a Taiwan’s mass rapid transit system.

Last but not least, a contract from Singapore to build six naval vessels.

Besides winning the orders, Tan believes that the company is on track for margin recovery in the current FY2023, reaching an estimated 9.4% by end of the year.

One reason for the better margins should come from reduced integration costs incurred from its recent $2.7 billion acquisition of the Transcore traffic management system provider firm in the US.

Another cost reduction should come from lower energy costs, as well as from stemmed losses from its US shipyard business that have been sold.

The way Tan sees it, ST Engineering remains a long-term investment with strong upside growth.

“More importantly, ST Engineering’s ability to generate strong free cash flow should ease concerns about its elevated debt levels,” adds Tan, who expects the ratio of net debt to equity to improve from FY23 onwards.
Click to expand...

Here we go.
 
Shion

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ST Engineering sets up China-based aerospace JV​


https://www.theedgesingapore.com/ne.../st-engineering-sets-china-based-aerospace-jv
The joint venture has a registered capital of RMB100 million, and ST Engineering will hold a 60% stake.

According to ST Engineering the JV will operate a greenfield airframe maintenance, report and overhaul facility at the Ezhou Huahu Airport.

The first hangar facility is estimated to be ready in 2025.

“China will be a strong growth driver for Asia’s commercial aerospace sector over the next decade,” says Jeffrey Lam, president of commercial aerospace at ST Engineering.

“A presence in Hubei, China, will enhance our MRO network in Asia to better meet and capture the rising regional demand, while our strategic collaboration with an airline partner will enable us to start up a greenfield operation quickly,” he adds.
 
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