ST Engineering - RHB Invest 2023-12-15: Order Wins Continue; Reiterate BUY

• ST Engineering (SGX:S63)’s ST Engineering Marine (ST Marine) subsidiary has secured a contract with the Defence Ministry (MINDEF) for the mid-life upgrades of the Formidable-class frigates for the Singapore Navy (RSN).
• - Read this at SGinvestors.io -
• We stay positive on ST Engineering’s near-term earnings growth outlook and retain our 19% profit CAGR for 2022–2025F.

Strong naval and defence capabilities.

• RSN’s Formidable-class multi-role stealth frigates fleet comprises six ships. Five out of these six were built by ST Marine and delivered to the RSN between 2008 and 2009.
• As part of the ships’ mid-life upgrades, ST Engineering will undertake the design and engineering of each frigate’s marine and electrical systems’ upgrades, including ship management and power generation systems. The frigates will be upgraded progressively, with the first vessel slated to complete its upgrades by 2028.
• - Read this at SGinvestors.io -

Defence order wins have been on a rise.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-12-16 SGinvestors.io

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