- ST Engineering (SGX:S63)'s 1H22 net profit of S$279.9m (+2.0% h-o-h, -3.8% y-o-y) was broadly in line with expectations, accounting for 49% of the consensus’s full-year estimate. If we were to exclude one-off costs, mainly related to TransCore transaction and integration costs, net profit would have been up 4.0% y-o-y to S$307.0m.
- - Read this at SGinvestors.io -
Absence of government grants support not felt.
- Business recovery and cost savings of S$104m, coupled with a one-off pension restructuring gain of S$72m in 1HFY22 more than offset the absence of the S$125m in government grants related to COVID-19-related support measures received by ST Engineering in 1H21.
- - Read this at SGinvestors.io -
- The pension restructuring gain also occurred in an overseas subsidiary in the Commercial Aerospace division, but even without this impact, Commercial Aerospace margins were tracking above our estimates (core EBIT margin of around 8% compared to our expectations of around 6%). This helped offset the lack of growth momentum in Urban Solutions & Satcoms division performance in 1H22.
ST Engineering appears to be coping well with rising cost pressures.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Suvro SARKAR DBS Group Research | Jason SUM DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-15
Read also DBS's most recent report:
2024-03-01 ST Engineering - Record Profits With Room For Growth.
Previous report by DBS:
2023-11-14 ST Engineering - Satcom Weakness To Weigh On Near-Term Profits.
Price targets by 5 other brokers at ST Engineering Target Prices.
Listing of research reports at ST Engineering Analyst Reports.
Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividends & Corporate Actions,
ST Engineering News Articles
