ST Engineering - Phillip Securities 2024-05-14: All Engines Roaring, But Satellite No Signal

ST Engineering - All Engines Roaring, But Satellite No Signal

Published:
ST Engineering (SGX:S63) | SGinvestors.ioST Engineering (SGX:S63)
  • ST Engineering (SGX:S63)'s 1Q24 revenue update was within our expectations at 25% of our FY24e. Revenue grew an impressive 18% y-o-y to S$2.7bn.
    • Around 2/3 of the growth was from commercial aerospace revenue that jumped 32% y-o-y to S$1.1bn. Rising aircraft flying hours, slower introduction of new engines, and increased capacity boosted revenue in aircraft MRO.
    • - Read this at SGinvestors.io -
    • Satellite operations is still looking to transition customers to its multi-orbit next-gen platform.
  • 1Q24 ST Engineering's dividend was 4 cents unchanged.
  • We expect revenue momentum and operating leverage to build up in the remaining quarters. We nudge our FY24e earnings forecast for ST Engineering by 3% to S$713mil.
  • - Read this at SGinvestors.io -

The Positives

Aircraft MRO remains the growth driver.

  • Commercial aerospace (CA) registered a 32% y-o-y jump in 1Q24 revenue to S$1.2bn. Growth was broad-based and led by aircraft MRO (Maintenance, Repair, and Overhaul).
  • With longer flying hours, MRO work is rising on engines, airframes, and other components. Delays in aircraft deliveries will further push the lifecycle of the existing aircraft fleet.

Broad-based growth in defence and public security.

  • 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/.




Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-14



Read also Phillip's most recent report:
2024-11-19 ST Engineering - Revenue Momentum Intact.

Previous report by Phillip:
2024-08-18 ST Engineering - Broad-based Growth.

Price targets by 4 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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