- ST Engineering (SGX:S63)'s 1H23 PATMI of S$280.6m (+0.2% y-o-y) met our and consensus estimates, at 50% of the respective FY23 forecasts. The increase was mainly due to contribution from Commercial Aerospace (CA) and Defence and Public Security (DPS) while Urban Solution and SATCOM (USS) lagged.
- - Read this at SGinvestors.io -
- Our target price for ST Engineering is correspondingly increased by 2.4% to S$4.20 (DCF based at an unchanged WACC of 7.4% and 2% TGR), offering 13% potential upside with 4.5% yield.
Strong CA and DPS growth; USS remains weak
- - Read this at SGinvestors.io -
- Defence and Public Security (DPS) earnings rose 40% y-o-y, attributable to business growth and absence of losses from US marine divestment amid higher contract wins of US$5.2b in 1H23.
- Urban Solution and SATCOM (USS) recorded higher EBIT loss of S$34m (+13% y-o-y) due to Satcom’s weaker performance amid global supply chain disruption and one-time loss of S$24m from the divestment of SatixFy shares.
Long-term growth well supported by various catalysts
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Kelvin Tan Maybank Research | https://www.maybank-ke.com.sg/ 2023-08-11
Read also Maybank's most recent report:
2023-11-10 ST Engineering - Primed For Strength; 9M23 Revenue In Line.
Price targets by 6 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
