ST Engineering - RHB Invest 2023-11-30: Accumulate During Current Share Price Weakness

ST Engineering - Accumulate During Current Share Price Weakness

ST Engineering (SGX:S63) | SGinvestors.ioST Engineering (SGX:S63)
  • The 7% correction in ST Engineering's share price since 12 Oct is an opportunity to accumulate ST Engineering – in our view, fundamentally, nothing has changed in terms of its outlook.
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  • With 19% profit CAGR during 2022-2025F and defensive yields, we believe ST Engineering should be part of every investor’s portfolio.

Strong earnings growth outlook

  • ST Engineering (SGX:S63)'s strong earnings growth outlook will continue to be supported by continued strength in commercial aerospace (CA) and sharp improvements in the urban solutions & satellite communications (USS) segments.
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    • The rightsizing exercise and earnings contribution from its TransCore acquisition should support earnings growth for USS.
    • The defence and public security (DPS) business should see earnings supported by the gradual delivery of the orderbook.
  • For 2022-2025F, we expect ST Engineering's CA, USS, and DPS segments to deliver 18%, 63%, and 8% EBIT CAGR.

Debt situation should gradually improve.

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Shekhar Jaiswal RHB Securities Research | 2023-11-30

Read also RHB's most recent report:
2023-12-16 ST Engineering - Order Wins Continue; Reiterate BUY.

Previous report by RHB:
2023-12-15 ST Engineering - Strengthening Its Cyber Capabilities; Keep BUY.

Price targets by 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


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