- We project ST Engineering (SGX:S63)'s 2H22F reported net profit at S$271m (-3% h-o-h, -1% y-o-y). Revenue is likely to be strong at S$4.7bn (+10% h-o-h, +17% y-o-y), driven largely by
- 6 months of contribution from TransCore, and
- - Read this at SGinvestors.io -
- However, we expect EPS growth to be weighed by higher interest expenses from ST Engineering’s short-term commercial paper (CP), which are most affected by rising interest rates.
- For Urban Solutions & Satcom (USS), integration and transaction costs continued to be incurred in 2H22. Satcom may take time to recover from higher cost of equipment due to long-lead time for purchases.
- See SGX Earnings Calendar – ST Engineering will report FY22 earnings on 24 Feb 2023.
Raising our FY23-24F interest rate assumptions further
- - Read this at SGinvestors.io -
- Our revised weighted average interest costs for FY23F are now at 3.5% (previously 2.9%).
China reopening is a bright spot for aerospace business
- Read more at SGinvestors.io.
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 2023-02-08
Read also CGS-CIMB's most recent report:
2024-02-12 ST Engineering - Longer-term Growth Drivers Intact.
Previous report by CGS-CIMB:
2023-11-10 ST Engineering - Set For A Stronger FY24.
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