ST Engineering

[helios]

more downside to come for this counter (looking at the charts)...

when bertyeo wrote this sentence, the closing was held at 2.75 on 30-jul, similar to what it was on 08-aug.

see weekly chart: to watch ST Engg if it can hover > $2.9+ (with volume)?



- Chart reviewed on 10-Aug'08.

[winston]

Not vested.

ST Engineering blames strong S'pore dlr for profit dip

SINGAPORE (Reuters) - Singapore Technologies Engineering (STEG.SI: Quote, Profile, Research, Stock Buzz), the world's biggest aircraft repair firm, posted a 2 percent drop in second quarter net profit but said it expected higher sales and earnings in the second half of 2008.

Profit at its aerospace arm, the largest of its four businesses, was hurt by the Singapore dollar's <SGD=> rise against its U.S. counterpart as well as by higher depreciation charges and development costs, ST Engineering said on Tuesday.

"The group expects to achieve a modestly higher turnover and profit before tax in second half 2008 compared to that of first half 2008," the firm said in a statement.

CEO Tan Pheng Hock told analysts and reporters the firm was still looking for acquisitions in countries such as India and Vietnam.

ST Engineering, which is 49-percent owned by state investment firm Temasek Holdings [TEM.UL] and a supplier of arms to Singapore's military, said net profit for the three months to June slipped to S$119.9 million from S$122.8 million last year.

Revenue for the quarter was little changed at S$1.3 billion, while the order book stood at S$9.29 billion at the end of June 2008, up slightly from S$9.19 billion at end-March.

ST Engineering's aerospace arm contributed S$61.6 million to net profit during the second half, down 11 percent from a year ago.

Its electronics business recorded a 6 percent rise in earnings to S$21.1 million, helped by better margins. The Land Systems group reported a 6 percent drop in earnings to S$20.6 million, while the Marine arm managed a 17 percent rise in pretax profit to S$16.2 million.

ST Engineering's shares have fallen about 25 percent so far this year, underperforming the 18 percent fall in the broader Straits Times index .FTSTI.

[winston]

Not vested.

RESEARCH ALERT-Citi cuts ST Engineering target to S$3.20

SINGAPORE, Aug 13 (Reuters) - Citigroup cut its target price for Singapore Technologies Engineering to S$3.20 from S$3.50 but kept its "buy" rating on the stock, reflecting a reduction in its estimates by 4-7 percent.

"The strength of the aviation business remains a key issue and is likely to remain muted in the near term thus catalysts are lacking despite the positive long-term growth prospects," said Citigroup analyst Low Horng Han in a research note.

ST Engineering reported a second-quarter net profit drop of 2 percent on Tuesday, hurt by lower contributions from its aerospace arm. [ID:nSIN125144] Shares of ST Engineering closed at S$2.80 on Tuesday.

[millionairemind]

ST Engineering’s Land Systems Arm Redevelops Company Premises

Singapore Technologies Engineering announced that its land systems arm, Singapore Technologies Kinetics has commenced the redevelopment of its premises at Jalan Boon Lay and Chin Bee Road. The construction cost for the project is estimated to be about $110m and construction is expected to complete in 1Q10. In addition to the construction of several custom-built workshops and alterations to some existing buildings, ST Kinetics will also be constructing a dedicated vehicle test track. Said the President of ST Kinetics, “The redevelopment will benefit both our customers and our employees. The converged locations .of our operations will boost operational efficiency and allow better resource planning. In addition, the better facilities and newer equipment will provide a more conducive working environment for all our employees.”

[millionairemind]

ST Engineering Acquires Star Automotive Center
ST Engineering has, through its land systems arm, ST Kinetics, acquired the remaining 13.76% stake in STAR Automotive Center (Zhejiang) (STAR) from Sinostride Technology for a sum of Rmb3.75m. Consequent to the purchase, STAR becomes a wholly-owned subsidiary of ST Kinetics. The acquisition is in line with ST Kinetics’ growth plan in the expanding automotive repair market in China. STAR has one of the largest facilities, operates the latest equipment and is very well recognised by all insurance companies in Jiangsu and Zhejiang provinces.

[ishak]

Crisis valuations
OUTPERFORM Upgraded
S$2.60 @16/09/08
Target: S$3.39

• Crisis valuations, negatives priced in. STE’s share price has receded 30% YTD on concerns over a slowdown in the global economy and aviation industry. We believe its current crisis valuations (13x CY09 P/E, below its post-911 valuation of 14x in 2001 and close to its post-SARS valuation of about 13x) have incorporated a weak macro outlook and cost pressures on the aviation industry.

• Breather from declining oil prices. The recent retreat in oil prices below US$100/barrel has started to take some pressure off airlines. IATA has also revised its financial forecast for 2008 to a net loss of US$5.2bn, based on an average oil price of US$113/barrel, short of the US$6.1bn worst-case forecast in June when oil cost US$135/ barrel. Although the weakness should persist into 2009, with forecast net losses of US$4.1bn, the outlook is more sanguine than after 911 (US$11bn loss) and SARS (US$6bn loss).

• Defensive. STE’s earnings growth is expected to be decent at a 3-year EPS CAGR of 9% and ROEs towering above 30%. A strong net cash position should also ensure high payouts (100% typically unless there is a large acquisition) with yields of 7%.

• Upgrade from Neutral to Outperform but target price remains S$3.39, still based on blended valuations (DCF, P/E, dividend yield and DDM). We have left our earnings estimates intact. STE is trading at trough valuations of 13x CY09 EPS or a 30% discount to our target price. Key catalysts could include new acquisitions, sizeable contract wins and a strengthening of the US$.

[millionairemind]

November 7, 2008, 1.57 pm (Singapore time)

ST Engineering wins US$107m contracts

SINGAPORE - Defence conglomerate Singapore Technologies Engineering said on Friday its electronics unit won two contracts worth $160 million ($106.7 million) from the Singapore government.

The two contracts involve supplying Singapore's highways and underground trains with communication systems, the firm said in a statement.

Both projects are expected to be completed by 2016 and will not have a material impact on earnings, the company said. -- REUTERS

[helios]

for personal note only:

One of the directors:
Mr Winston TAN Tien Hin, 59, is the Managing Director of Corporate Brokers Intl Pte Ltd which functions as 'angel investor' & also a director in Ascendas pte ltd, Hotel Royal ltd & Roxy-Pacific Holdings Ltd.

& winmark investments pte ltd ...

[winston]

STE marine arm wins S$200 mln deal
By ANGELA TAN

Singapore Technologies Engineering Ltd (ST Engineering) said on Tuesday that its marine arm, Singapore Technologies Marine Ltd (ST Marine), has secured a contract in a basket of currencies amounting to about S$200 million, to design and build a Landing Platform Dock.

ST Marine has to to design and build a 141m Landing Platform Dock, two 23m Landing Craft Mechanised and two 13m Landing Craft Vehicle and Personnel, for a navy in the Asia Pacific region.

Construction is scheduled to begin in mid 2009 and delivery is planned for in 2H 2012.

[millionairemind]

December 1, 2008, 5.38 pm (Singapore time)

STE's marine unit wins S$30m vessel deal
By VINCENT WEE

ST Engineering marine unit ST Marine sealed a S$30 million design, construction and outfitting contract to build a 68-metre seismic survey vessel for Swire Pacific subsidiary Swire Pacific Offshore Operations (SPO).

SPO has been planning for this new build and will be providing the vessel's basic design and major equipment, including the seismic survey equipment. Construction is expected to commence in May and delivery is expected in the second half of 2010.

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.