- ST Engineering booked 3QFY24 revenue of S$2.8bn, with 9MFY24 revenue of S$8.3bn representing 74.4%/73.9% of DBS/consensus full-year estimates, meeting expectations given that 4Q24 tends to be the strongest quarter for the group in terms of seasonality.
Strong performance in DPS segment offsets drag from USS division and slowdown in CA segment.
- - Read this at SGinvestors.io -
- Meanwhile, commercial aerospace (CA) segmental revenue grew 7% y-o-y, but dipped 2% q-o-q to S$1,054mil during the quarter, largely in line with expectations, as MRO strength likely tempered a slowdown in OEM revenue due to a lack of feedstock for P2F conversions and Airbus delivery delays.
- - Read this at SGinvestors.io -
- While ST Engineering does not disclose any measure of earnings in its quarterly updates, we note that a positive revenue mix (higher contribution from defence business with 12-13% operating profit margins) suggests that the group’s earnings during the period were likely better than expected, barring any material adverse developments from other segments.
Contract wins slowed to S$2.2bn in 3QFY24, representing a book-to-bill ratio of 0.8x.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-19
Previous report by DBS:
2024-08-15 ST Engineering - Powering Ahead In 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
