It was buoyed by the $479m contract for Jet Airways.
The order win in ST Engineering’s component engine repair and overhaul (CERO) division of its aerospace segment is positive for the firm, RHB analyst Shekhar Jaiswal said. The analyst noted that division recorded high utilisation rates and an uptick in shop visits since late 2017 and 2018.
“We believe the Jet Airways contract will assist the aerospace business to maintain the profitability that it is currently witnessing at its CERO division,” Jaiswal noted.
ST Engineering bagged an additional contract for Jet Airways worth $479m, bringing its maintenance, repair, and overhaul services (MRO) for the airline to $957m.The analyst noted that the said contract brings the firm’s 2018 order wins to $3b, which is $2b short of 2017 record order wins.
In addition, the firm also secured an $18.8m contract together with Siemens to develop and implement a Rail Enterprise Asset Management System (REAMS) for Singapore’s MRT network.
“We believe the order size could get scaled up once more MRT lines are added to REAMS,” the analyst said.
The project awarded by the Land Transport Authority (LTA) will use data analytics capabilities to monitor asset performance and identify potential faults before they occur which will allow pre-emptive assets repair or renewal.
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