ST Engineering pins hopes for growth on strong order book

Its aerospace arm pushed order book to $13.3b.

After its net profit dropped 6% to $103.4m, ST Engineering is seeking relief from its strong order book slated for the next quarters.

According to OCBC Investment Research, earnings will be supported by its strong order book of $13.3b nabbed by its aerospace and electronics sectors in the past quarter.

Meanwhile, the brokerage firm noted three things that can boost the group's yields. Firstly, aerospace sector will be driven by its passenger-to-freighter (PTF) programmes as well as through its exposure to the growing aerospace industry in China.

OCBC Investment Research is also positive on STE’s electronics sector exposure to high growth areas relating to Singapore’s smart nations initiatives and cyber security.

Lastly, ST Engineering's land systems will be driven by involvement in the development of autonomous vehicles for urban transport as well as delivering next generation armoured fighting vehicles for MINDEF from FY19 onwards.
 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Exclusives

Singapore, Hong Kong take rival paths to capture global gold trade
One builds MAS-backed vaulting for central banks, the other opens a pipeline to Shanghai.
Monday.com picks Singapore for Southeast Asia expansion
Its in-house designers created Singapore-inspired artwork in the company's colors.
Tsuklio targets dual-income families in Singapore expansion
The Japanese meal subscription platform logged 3,000 pre-registrations before launch.