3 things that can boost ST Engineering's growth in the long run

Its cybersecurity solutions are gaining traction.

After it posted a 6.1% slump in net profit for the past quarter, ST Engineering is optimistic with its long-term outlook given its initiatives that are expected to bear fruit in the coming years.

According to UOB KayHian, ST Engineering has secured deals that can boost the group's activity in the next few years, particularly in the cyber security solutions side.

For one, it managed to win a contract from the Sri Lankan government to provide consultancy services for its national cyber security operations. It also inked a deal with the Singapore Armed Forces for cyber defense training.

Meanwhile, it is set to develop autonomous buses with the Land Transport Authority.

Another possible catalyst for the group is the commencement of its new hangar in Guangzhou.

"Over the long run, we believe ST Engineering is poised to benefit from its engineering capabilities and technological enhancements," UOB KayHian said.