- ST Engineering's 3Q24 revenue growth of 14% y-o-y was led by defence (+31%) and commercial aerospace (+7%). Urban and Satcom revenue registered a 5% contraction.
- 9M24 revenue was within expectations at 74% of our FY24e. Limited financials were provided in ST Engineering's 3Q24 update.
- - Read this at SGinvestors.io -
- We lowered our FY24e earnings forecast for ST Engineering by 3% to S$723mil. Our margin assumptions were lowered for the lack of pricing power in CA despite rising labour costs and high utilisation rates.
The Positive
Defence revenue jumps.
- - Read this at SGinvestors.io -
- Segments driving growth are defence maintenance, repair, and overhaul (MRO), conventional weapons, infrastructure cyber security (e.g. utilities, transportation) and ammunitions (40mm and 155 mm).
The Negative
Satcom is still in restructuring mode.
- Read more at SGinvestors.io.
