ST Engineering

[ValueInvestor]

ST Engineering clinches several aerospace contracts worth $920m

By Jeffrey Tan / www.theedgemarkets.com | July 9, 2015 : 6:41 PM MYT
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SINGAPORE (July 9): Singapore Technologies Engineering Ltd (ST Engineering) has clinched several aerospace contracts worth $920 million in the second quarter this year.

The new orders involve projects ranging from airframe, component and engine maintenance, to engine wash and pilot training, the engineering services provider told the stock exchange in a statement.

ST Engineering secured a maintenance-by-the-hour contract from Flybe and an engine maintenance contract from Jet Airways.

It also secured a heavy maintenance agreement for six Airbus A319 aircraft belonging to an international airline.

For component support, it won several Boeing 737NG landing gear overhaul and exchange contracts for airline operators in Asia and Oceania.

In terms of engine support, an agreement was inked for the heavy maintenance of six CFM56-7B engines for a low-cost carrier in Southeast Asia.

ST Engineering also secured multiple contracts with customers in Asia Pacific, Europe and the US for EcoPower engine wash services.

It signed a three-year pilot training contract with Tigerair Singapore for the provision of simulator training services.

ST Engineering said the contract wins are not expected to have any material impact on its consolidated net tangible assets per share and earnings per share in the current financial year.

ST Engineering ended down 1 cent or 0.3% to $3.26, giving it a market capitalisation of $10.14 billion.

 

[ValueInvestor]

good win, the size is quite big as its close to 1bil sia

I think likely for STE to chiong 1-2% tomorrow

well.. unless china market crash LOL


HUAT AH $$$$$$$$$$$


vested 6000 shares

 

[Keverus]

St eng always win contracts...but share price got go up?

 

[ValueInvestor]

St eng always win contracts...but share price got go up?

if u bearish u short lor hahahahaha

currently price seems to be holding well at 4.6% yield

 

[Shion]

St eng always win contracts...but share price got go up?

Will go up soon

It is a very stable company

 

[ValueInvestor]

St eng always win contracts...but share price got go up?

winning contracts, is fundamentally a good sign

usually those maintenance contracts are long term, say 5-15 years

so earnings will be recurring and stable

STE stay low price, I happy~ cause can buy up this dividend counter cheap cheap... it don't chiong too soon hehehe, let more people board the boat ma hahaha

 

[ValueInvestor]

Will go up soon

It is a very stable company

solid like a rock

3.20 very very strong support

should not be broken, unless really GFC 2 caused by china

 

[Keverus]

Lol nth much to say. U guys like just buy. This counter is a yield trap. Move to 3.3x.then will slip back to 3.2x

 

[ValueInvestor]

Lol nth much to say. U guys like just buy. This counter is a yield trap. Move to 3.3x.then will slip back to 3.2x

3.2 to 3.3 and come back to down 3.2 mean that STE is ranged bound liao

think is probably due to their weak Q1 earnings

all eyes on Q2 earnings ba........ so really hard to say

STE this type or stock, low beta defensive stock.. hard to get capital gains one..

just low returns, stable 4%+ dividend yield kanna play ba

 

[Keverus]

3.2 to 3.3 and come back to down 3.2 mean that STE is ranged bound liao

think is probably due to their weak Q1 earnings

all eyes on Q2 earnings ba........ so really hard to say

STE this type or stock, low beta defensive stock.. hard to get capital gains one..

just low returns, stable 4%+ dividend yield kanna play ba

That's what ppl say when it was at 4.xx

 

[Shion]

Lol nth much to say. U guys like just buy. This counter is a yield trap. Move to 3.3x.then will slip back to 3.2x

This is just based on TA ?

FA and overall wise, it is still a very stable company

Stability is what I look at

 

[ValueInvestor]

That's what ppl say when it was at 4.xx

If u think it will go to 2.xx

U short big lor hahahaha


I am pretty confident STE will stay above $3 all the way, thats why i invested 6,000

Each to their own meat ba

 

[ValueInvestor]

This is just based on TA ?

FA and overall wise, it is still a very stable company

Stability is what I look at

Yup,
STE a lot of long term government contract that provides recurring income

Just that now europe is weak, affecting their overseas revenues in aerospace segment

 

[wahkao3]

dont be hard up over dividend

 

[Shion]

dont be hard up over dividend

Luckily I am not

 

[ValueInvestor]

dont be hard up over dividend

don't go for dividends, then go for capital gains???

only 2 ways to make $$

dividends or capital gains...

this kinda market... shi fu, u any tips to get capital gains?

 

[Biogentic]

good win, the size is quite big as its close to 1bil sia

I think likely for STE to chiong 1-2% tomorrow

well.. unless china market crash LOL


HUAT AH $$$$$$$$$$$


vested 6000 shares

low oil price likely to benefit airlines... when airline saves more, they will reinvest their revenue in their product offering like cabin reconfiguration, etc to remain competitive. as such, feel confidence in the company especially they also have contract with the sg govt, software for cybersecurties, etc.. vesed 10,000 shares.

 

[ValueInvestor]

low oil price likely to benefit airlines... when airline saves more, they will reinvest their revenue in their product offering like cabin reconfiguration, etc to remain competitive. as such, feel confidence in the company especially they also have contract with the sg govt, software for cybersecurties, etc.. vesed 10,000 shares.

yeah very well said... the airlines will benefit from lower oil price for sure

this year, saw STE won quite a few contracts on aircraft maintenance riao

 

[Keverus]

Wow. Just wow.

I wish you guys were JC kids and I'm your JC teacher so I can put an A grade for your H1 economics paper.

Unfortunately, we're not.

Lower oil prices will be good for airlines? Really? Then why is the industry not doing well now?

The fact is, airlines depend on oil, A LOT. To the extent they will have futures agreement to buy oil at a cheaper (at that point of time) price. Meaning when oil was at say, 100 per barrel, airlines would have probably done a 3 year contract to buy it at maybe 90 to 110 per barrel instead (depending on the arragements, very likely to be 110 region instead, since nobody felt that oil was going to come off). Oil producers would be happy to take up such agreements as well since it would guarantee that their revenue would at least be increasing at a certain rate.

So when oil glut happens, airlines are still stuck with the same contracts. While other people are happily enjoy oil at 50-60 per barrel, the airlines are forking out the same old price for oil.

Sheesh.

And stop asking me to short ST Eng. It simply shows you have a lack of mathematical skills. I have already mentioned that I am bearish on ST Eng, but it would be a slow bear (bar any catalyst). As such, my funds would be better deployed elsewhere (read: opportunity cost). Also, it makes more sense to short counters that are lower in pricing for two reasons. Firstly, a one cent drop on say, Noble, represents a gain of over 1% (ignoring leverage). The same one cent drop on ST Eng represents only a gain of 0.3%. Now given such conditions, you would have to agree it would be pretty foolish to short ST Eng even if the view is bearish.

 

[ValueInvestor]

but nowadays, every month also like very volatile leh... hahaha

so many problems globally

be it US Europe or China