- While ST Engineering has good earnings visibility and growth, its current valuation leaves risk-reward balanced, in our view.
SATCOM impairment reduces overhang; special dividend positive surprise, but likely one-off.
- - Read this at SGinvestors.io -
- ST Engineering substantially wrote down the carrying value of its underperforming satellite communications business, removing an overhang.
- Special dividend of S$0.05. declared from divestment gains. All in, a quarter within expectation.
Defence and aerospace anchors growth.
- - Read this at SGinvestors.io -
- Contract wins for the quarter totaled S$4.9b. CA segment won an Airbus PTF order while DPS segment saw better momentum in order wins for its international defence business in the Middle East and Europe. USS segment saw its second consecutive quarter of billion Singapore dollar plus order wins, led by rail transport and healthcare in Singapore. This resulted in a record order book of S$32.6b, +21.2% y-o-y.
Pruning portfolio; sharing divestment gains.
- Read more at SGinvestors.io.
