ST Engineering - CGS-CIMB Research 2022-05-13: Defensive Giant In Trying Times

ST Engineering - Defensive Giant In Trying Times

SINGAPORE TECH ENGINEERING LTD (SGX:S63) | SGinvestors.ioSINGAPORE TECH ENGINEERING LTD (SGX:S63)
  • ST Engineering (SGX:S63)'s 1Q22 revenue returned to pre-COVID-19 levels of S$2bn. Transcore acquisition bearing fruit with S$1.6bn addition to ST Engineering’s S$21.3bn order book.
  • Active product redesign, supply chain management and some cost pass-through to customers mitigate inflationary and chip shortage pressures.
  • Catalysts: quicker global border reopening and strong orders in digital/smart city.
  • We cut FY22-24F earnings per share (EPS) forecast by 2-3% to factor in inflation and rising interest rates although ST Engineering sees minimal impact for now.
  • Our blended valuations target price for ST Engineering is based on 20.7x FY23F P/E, DCF, and 4% dividend yield.



Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.



LIM Siew Khee CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-13
SGX Stock Analyst Report ADD MAINTAIN ADD 4.700 SAME 4.700




Read also CGS-CIMB's most recent report:
2022-06-01 ST Engineering - NDR Takeaways: Growth & Yield

Target prices by 2 other brokers at ST Engineering Target Prices.
Listing of broker reports at ST Engineering Analyst Report.

Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividends & Corp Actions,
ST Engineering News Articles





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