- ST Engineering (SGX:S63)'s FY23 net profit was in line with our expectations. Net profit was affected by several one-offs amounting to S$66mil. Excluding these, net profit would have grown by 23.7%.
- - Read this at SGinvestors.io -
- Commercial aerospace (CA) grew 47% y-o-y (excluding one-off items) with increased MRO demand and improved margins from passenger-to-freighter conversions.
- Urban solutions and Satcom (USS) incurred loss on divestment and severance costs on restructuring. Transcore turned profitable in 4Q23.
The Positives
Aerospace MRO revenue rose 41%, as demand surged in tandem with recovery in air travel.
- The passenger-to-freighter conversion business has also scaled the learning curve and is turning profitable. However, commercial aerospace FY23 EBIT margin fell 1.5% pt to 8.6% due to higher manpower costs.
Defence and public security posted EBIT growth of 40%.
- - Read this at SGinvestors.io -
Net debt to EBITDA improved to 4.2x, from 5.0x in Dec 22
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Peggy Mak Phillip Securities Research | https://www.stocksbnb.com/ 2024-03-04
Previous report by Phillip:
2023-11-14 ST Engineering - Defence & Security Will Move To The Forefront.
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
