InvestIdeas

sharing the coverage on ST Engineering that I came across online...

given the current market volatility, i'm looking for stable stocks with decent dividend payouts...entered into this counter at 3.18 this morning...

Past dividend records of ST Eng (extracted from SGX website):

30-Apr-08 SGD 0.1088 ONE-TIER TAX
30-Apr-08 SGD 0.04 ONE-TIER TAX
22-Aug-07 SGD 0.02 ONE-TIER TAX
27-Apr-07 SGD 0.04 ONE-TIER TAX
27-Apr-07 SGD 0.1111 ONE-TIER TAX
5-Apr-06 SGD 0.04 ONE-TIER TAX
5-Apr-06 SGD 0.096 ONE-TIER TAX
5-Apr-05 SGD 0.04 ONE-TIER TAX
5-Apr-05 SGD 0.0839 ONE-TIER TAX
5-Apr-04 35% ONE-TIER TAX
5-Apr-04 78% ONE-TIER TAX
9-Apr-03 18% TAX EXEMPT
9-Apr-03 102% LESS TAX
9-Apr-03 30% LESS TAX
9-Apr-03 35% ONE-TIER TAX
10-Apr-02 65% LESS TAX
10-Apr-02 25% LESS TAX
10-Apr-02 18% TAX EXEMPT
5-Apr-01 55% LESS TAX
5-Apr-01 15% TAX EXEMPT
5-Apr-01 25% LESS TAX
6-Apr-00 70% LESS TAX
6-Apr-00 23% LESS TAX
28-Apr-99 50% LESS TAX
28-Apr-99 18% LESS TAX
1-Jul-98 6% LESS TAX
1-Jul-98 12% LESS TAX

Noted that Aberdeen Asset Management had upped their stakes yesterday as well

any comments on this stock?

ST Engineering - Steady growth despite some softness
(KE - Buy $4.23) 7 May 08

Previous Day Closing price: S$3.21
Recommendation: Buy (maintained)
Target price: S$4.23 (reduced)

♦ Steady growth despite some softness

- ST Engineering saw its 1Q08 net profit increase by 13%% to $122.5m. Turnover for the quarter increased by 8% to $1,315m.

- All sectors reported higher turnover except for the Marine sector which had comparable turnover. STE saw improved earnings for the Aerospace and Land Systems sectors and lower earnings for the Electronics and
Marine sectors.

♦ Hints of margin pressure

- While overall EBIT margins remained resilient at 10.7%, we note that aerospace margins declined to 14.3%, versus 15.7% in 1Q07, 18% in 4Q07 and 16.6% in FY07.

- Overall earnings were also hampered by the weaker US dollar (by about $4m), lower interest rate affecting returns of funds under management, and expenses for the Singapore Airshow in February.

♦ Net order book healthy at $9.19bn

- STE’s order book remained healthy at $9.19bn (versus $9.5bn as of last quarter), despite the downward adjustment of about $1bn due to the termination of the Skybus contract.

- About $2.89bn of the Group's order book is expected to be delivered in the remaining months of 2008, which is consistent with our turnover estimate.

- STE’s own forward guidance is to achieve a modestly higher turnover and PBT in 1H08 as well as FY2008.

♦ Lowering target price to $4.23; Maintain BUY

- Despite an element of lumpiness, we do believe that STE is seeing some pressure in its margins. This is likely more acute in its US-based earnings from Aerospace, which tends to be vulnerable during an economic slowdown.

- We have factored in slightly lower EBIT margins across all divisions, and have consequently lowered our net earnings forecast for FY08 by 4.8% to $528.7m, and in FY09 by 2.5% to $590.2m.

- DCF-based target price has been adjusted downward to $4.23 from $4.50 previously.

- STE’s earnings will remain solid for the foreseeable future, and is backed by its dividend yield of 4.8%.

Maintain Buy.

Source: Kim Eng

Hi kazataza,

The following are the Target Price that I have:-
1) KENG 4.23 May 7 from 5.22 Mar 5 from 4.5 Feb 27 Nov 9
2) CIMB 3.7 May 7 from 4.01 Feb 27 from 4.36 Dec 12 PE 20 Nov 9 from 3.92 May 23
3) CitiGrp 4.4 June 3 from 4.12 May4 from 3.92 Jan19
4) Nomura 4.08 May 28
5) OCBC 3.92 Mar 31 Feb 28 from 3.74 May 23 PE 20 from 3.5 Feb 14
6) Mac Q 4 Feb 8
7) DBS 3.5 May 7 from 4.2 JAN 3 Aug 10 May 3 from 3.62 Nov 23
8) Merrill 3.56 Feb 13 DB 4.25 Feb 22
9) MS 4.5 Feb 25
10) DMG 4.02 Apr 10
11) UOB 3.3 May 6

Welcome & Take care,
Winston

Substantial shareholder Aberdeen Asset Management Asia Ltd increased its stake in Singapore Tech
Engineering Ltd from 5.9328% to 7.6913%.

I have always liked ST Eng. Although Edge recently said that SIA Eng is a better buy, I don't quite agree as ST Eng is far more diversified. It is slow, very stable and won't give one sleepless nights. In fact I will buy more when prices go lower. Also I have a lot of respect for Aberdeen Asset Management.

agree that ST Engineering is a slow and steady counter...had bought in when it was at 3.18....low for the past week was 3.16 (as usual, after i bought in...)

dumbobear,
what price are u looking at for entry?

ST Engineering Inks Agreement With GE Aviation
ST Engineering’s aerospace arm, ST Aerospace, has signed an agreement for global cooperation with GE Aviation (GE). The areas of cooperation include engine maintenance, repair and overhaul (MRO) and on-wing support, in which GE will provide technical assistance and OEM support to ST Aerospace to develop efficient and cost effective support for GE engine operators. The second area of cooperation will be engine material services. Expanding on a current GE service offering, CFM International, a 50:50 joint company between General Electric Company and French firm Snecma, will provide comprehensive material solutions to support and enhance ST Aerospace’s engine MRO operations.

ST Engineering’s Marine arm secures S$127.7M contract to build and outfit a diving support vessel
Singapore Technologies Engineering Ltd (ST Engineering) today announced that its marine arm, Singapore Technologies Marine Ltd (ST Marine), has secured a S$127.7m contract to build and outfit a Diving Support Vessel (DSV) for a foreign customer registered in Singapore. Construction is scheduled to begin in January 2009 and delivery is planned for mid 2010. This 107.1m long DSV will be designed and built in accordance with the rules and regulations of Det Norske Veritas (DNV) with a light “Ice Class” notation.

Equipped with an electric propulsion system with dynamic positioning system DP2 capability, the DSV with a deadweight of 4,000 tonnes will have accommodation space for 100 persons, a 140-tonne subsea crane, an 18 men Diving Saturation System and will carry two Remotely Operated Vehicles (ROV) to support diving operations in the subsea sector. When completed, this DSV will enhance the customer’s fleet to serve its clients in the oil and gas industry.

Not vested.

Morgan Stanley cuts target price to S$3.60 (previously $4.20)

ST Engineering Renews Component Contract With LOT Polish Airlines

Singapore Technologies Engineering announced that ST Aerospace Solutions (Europe) A/S (STA Solutions), the subsidiary of Singapore Technologies Aerospace, has renewed a component supply and reconditioning contract with LOT Polish Airlines. This contract is worth about $18.7m, and covers LOT Polish Airlines’ fleet of seven Boeing 767 aircrafts over three years under the STA Solutions material supply programme. ST Aerospace is the aerospace arm of ST Engineering. LOT Polish Airlines commented that STA Solutions’ consistently high standards of quality have earned their trust and confidence in renewing the partnership.