- ST Engineering (SGX:S63) guided for weaker y-o-y FY23F USS EBIT. We expect margin rebound in FY24F on ramp-up of major projects and streamlined Satcom costs.
Decent revenue growth led by aerospace, while order wins tapered
- - Read this at SGinvestors.io -
- Commercial Aerospace (CA) revenue was the key driver (+27% y-o-y), while Urban Solutions & Satcom (USS) recorded slight y-o-y growth (+6% y-o-y).
- 3Q23 order wins tapered to S$2.2bn (-53% q-o-q, -54% y-o-y), with all three segments seeing y-o-y declines.
Positive Aerospace trends; PTF on track to EBIT breakeven
- Maintenance, repair, and overhaul (MRO) revenue grew y-o-y (amount undisclosed) in 3Q23, driven by both airframe and engine & component (E&C). Hangar utilisation is close to maxed out, while E&C shops’ utilisation saw q-o-q improvement to 85%.
- - Read this at SGinvestors.io -
- Expansion plans are on track, with:
- Guangzhou hangar commencing in 1Q24F, and
- Ezhou, Singapore, and Pensacola hangars commencing in 2025F.
Healthy DPS revenue growth, seeing good international demand
- 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 2023-11-10
Read also CGS-CIMB's most recent report:
2024-02-12 ST Engineering - Longer-term Growth Drivers Intact.
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Listing of research reports at ST Engineering Analyst Reports.
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ST Engineering Dividends & Corporate Actions,
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