ST Engineering - UOB Kay Hian 2024-11-19: 3Q24 Revenue In Line; Expect To End 2024 On A Strong Note

• ST Engineering’s 3Q24 revenue of S$2.78b (+14% y-o-y, -1% q-o-q) was in line with our expectations, at 25% of our full-year forecast. 9M24 revenue of S$8.30b (+14% y-o-y) stood at 74%.
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Segmental revenue performance was more mixed.

Defence & public security (DPS).

• 3Q24 DPS revenue of S$1.27b (+31% y-o-y, +2% q-o-q) came in slightly above our expectations, with 9M24 revenue of S$3.64b (+18% y-o-y) forming 77% of our full-year forecasts. DPS has seen revenue growth across all sub-segments on the back of strong demand.

Commercial aerospace (CA).

• 3Q24 CA revenue of S$1.05b (+7% y-o-y, -2% q-o-q) was slightly weaker than expected, with 9M24 revenue of S$3.29b (+16% y-o-y) forming 73% of our full-year forecast.
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Urban solutions & satcom (USS).

• 3Q24 USS revenue of S$455m (-5% y-o-y, -7% q-o-q) was slightly behind our projections, with 9M24 revenue of S$1.37b (+0.3% y-o-y) forming 70% of our full-year projections.
• In 9M24, revenue growth at the urban solutions sub-segment (including TransCore) was largely offset by lower Satcom revenue.

Orderbook dipped slightly q-o-q, partly due to forex translation.

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Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-19 SGinvestors.io

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