ST Engineering earns an all-time outstanding orderbook of $15.6b

STE maintains revenue visibility for two years.

STE recorded an outstanding orderbook of $15.6b, providing revenue visibility for two and a half years, reports research institute RHB.
Including a $1b contract for the design and construction of the first Polar Security Cutter, STE has reported order wins worth $4.6b in 1H19 vs. $5.2b order wins in 2018.

STE recently completed three acquisitions with Middle River Aerostructure Systems (MARS), Glowlink and Newtec, which are expected to bring earnings to STE. MRAS is forecast to gain accretive earnings, whilst Newtec is sighted to contribute from FY20F.

Along with new acquisitions, STE is confident that their new solutions will help scale up the operations of the company. Its proprietary solutions for satcom ground equipment is seen to build the company’s strong presence in the segment.

STE will deploy low earth orbit satellite constellations which is likely to drive the convergence between satcom and upcoming 5G networks, driving demand for satcom ground equipment and terminals.

STE’s stocks are set at a take-profit (TP) order of $4.70.