ST Engineering - RHB Invest 2024-11-19: In-line 9M24, Maintain Growth Expectations; Still BUY

• We remain upbeat on ST Engineering’s revenue and profit momentum and expect it to deliver a 15% profit CAGR and steady dividends in 2023-2026.
• ST Engineering's 3Q24 revenue of S$2.8bn (+14% y-o-y) accounted for 52% of our 2H24F. While the other segments reported y-o-y revenue growth, urban solutions & satcom (USS) revenue declined 5% amidst the weak satcom business.
• - Read this at SGinvestors.io -

3Q24: Excluding USS, all businesses reported revenue growth.

• On a y-o-y basis, commercial aerospace (CA) and defence & public security (DPS) reported 7% and 31% revenue growth.
  • DPS growth was aided by strong order deliveries for across key sub-segments.
  • - Read this at SGinvestors.io -
  • For USS, although revenue was down y-o-y, ST Engineering reiterated that the business segment’s 2H24 revenue will be higher as compared to the same period last year.
• CA, DPS, and USS 3Q24 revenue accounted for 55%, 59%, and 42% of our 2H24F forecast for ST Engineering. .

S$700m revenue guidance for the PTF business by 2026

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-11-19 SGinvestors.io

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