- ST Engineering (SGX:S63)'s 1H24 results largely in line with expectations amid satcom challenges and margin compression. 1HFY24 core net profit came in at S$336.5mil (+0.8% h-o-h, +12.3% y-o-y), accounting for 49% of the street/DBS’s full-year estimate and largely in line with expectations given that 2H tends to be seasonally stronger.
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- Interim dividend per share of 4.0 cents was declared, consistent with ST Engineering's dividends in previous years.
Overall business momentum continues to be strong
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- In the CA segment, both MRO and OEM sub-segments demonstrated remarkable growth, with revenue increasing by 32.3% and 19.9% y-o-y respectively, while the Digital Systems & Cyber and Marine sub-segments propelled growth in the DPS segment, growing by 15.6% and 18.8% y-o-y respectively, driven by contributions from D’Crypt and strong ship repair demand.
- Despite drag from the satcom business, overall urban solutions & satcom (USS) segment revenue grew 3% y-o-y, with the urban solutions sub-segment revenue rising by 8.6% y-o-y. This was led by TransCore, which saw double-digit growth y-o-y.
Group core operating profit margin shrank slightly
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