ST Engineering

(17-07-2014, 05:52 PM)orangetea Wrote: Just became vested today on back of news (yet no price run.)

Added some on this pull back.

I like that Aberdeen's buy price is around $3.6031 last oct, which is today's low of 3.60

That being said, following funds like Aberdeen does not mean sure win, but i like that defensiveness of the biz.

(vested)

(07-11-2014, 01:58 PM)orangetea Wrote:

(17-07-2014, 05:52 PM)orangetea Wrote: Just became vested today on back of news (yet no price run.)

Added some on this pull back.

I like that Aberdeen's buy price is around $3.6031 last oct, which is today's low of 3.60

That being said, following funds like Aberdeen does not mean sure win, but i like that defensiveness of the biz.

(vested)

yes, 3.6 is holding well.
my average price is 3.79. i have quite a few lot, wonder whether i should add somemore.

http://www.businesstimes.com.sg/companie...it-slips-8

ST Engineering's Q3 profit slips 8%
Aerospace segment hit by weaker European ops, restructuring costs

By
Anita Gabrielanitag@sph.com.sg@AnitaGabrielBT
8 Nov5:50 AM
Singapore

SINGAPORE Technologies Engineering (ST Engineering) posted a 7.7 per cent dip in net profit to S$121.3 million for the third quarter from S$131.4 million a year ago, largely due to weak European operations.

Revenue was flat at S$1.553 billion against S$1.55 billion a year

The beauty of ST Engg is that it is tied closely to the fortunes of MINDEF budget. WHile I am not a shareholder, perhaps it is a good question for shareholders to raise at the next AGM. How much of ST engg revenue comes from MINDEF. I wont be surprised if the electronics and marine segment is heavily patronised by MINDEF.

In my reservists, I am constantly bombarded by St engg products; SAR 21, war simulation program, Test set, Armour personnel vehicles etc. As an analyst, the question then is how much can ST engg grow if our defence budget slows down.

I think that ST engg will not be performing well in terms of the share price for the next year. Their profits are predicted to be quite flat and maybe increasing slightly.

With a PE ratio of 19+, I do not think this is a good buy.

(08-11-2014, 07:50 PM)CY09 Wrote: The beauty of ST Engg is that it is tied closely to the fortunes of MINDEF budget. WHile I am not a shareholder, perhaps it is a good question for shareholders to raise at the next AGM. How much of ST engg revenue comes from MINDEF. I wont be surprised if the electronics and marine segment is heavily patronised by MINDEF.

In my reservists, I am constantly bombarded by St engg products; SAR 21, war simulation program, Test set, Armour personnel vehicles etc. As an analyst, the question then is how much can ST engg grow if our defence budget slows down.

Commercial account for 58% of sales.

Of the defence contract, not all are dependable on Mindef, some are generated from US.

In fact, Singapore account for less than half of its revenue

STE's aerospace biz seems to be facing the same problem as SIAEC.

Group’s revenue of $1,553 million for 3Q2014 was comparable to that of 3Q2013. Higher revenue from Marine sector was largely offset by lower revenue recorded by Aerospace sector, while revenue for Electronics and Land Systems sectors were comparable. The lower revenue under “Others” was mainly attributable to Miltope.
Aerospace sector’s 3Q2014 revenue of $470 million was 8% or $40 million lower than that of 3Q2013, mainly attributable to lower revenue in the Component/Engine Repair & Overhaul business group.
3Q2014 revenue of $354 million for the Electronics sector was comparable to that of 3Q2013. The higher revenue from Large-Scale Systems Group (LSG) and Software Systems Group (SSG) was
largely offset by lower revenue from Communication & Sensor Systems Group (CSG). The higher LSG revenue was mainly due to milestone completions of the Land Transport Authority’s Circle Line
project and the MRT projects in Bangkok and Wuxi, while milestone completions of various software system projects accounted for the higher revenue in SSG. For CSG, the lower revenue was mainly
attributable to lower sales of satellite communication products.
Land Systems sector’s 3Q2014 revenue of $357 million was comparable to that achieved in 3Q2013.
The higher revenue recorded by Munitions & Weapon business group from higher project deliveries, was partially offset by lower revenue in the Automotive and Services, Trading & Others business groups.
Revenue of Marine sector in 3Q2014 of $336 million was higher than that of 3Q2013 by 14% or $40 million, due mainly to higher Shipbuilding revenue from the local operation as well as higher
Engineering revenue, but partially offset by lower Shiprepair revenue.

(09-11-2014, 12:22 AM)violinist Wrote: Many years ago I worked on xxx radar system......

Well, I do understand that the company worked on classified project, and the "radar system" should be one of them. I really doubt the information disclosured is available in public domain.

I have removed the post. Please take note

Regards
Moderator

My thoughts on ST engineering aerospace results:

There was impairment losses on an associate. The CEO mentioned there is some restructuring of operations at Europe, and so I assume the impairment comes from Europe.

Looking at the segment results, it is not difficult to pinpoint the problem.



It is the component/ engine repair and overhual segment that saw the plunge in profits, the actual same segment that overlapped with SIA engineering.

Personally, I think we cannot use one quarter of results to assume worse to come for SIA engineering, but I think it is a bit of stretch to lump ST with SIA engineering together.

This segment forms only 30% of ST aerospace revenue, the rest of the segment show more nuance fall in profitability. In terms of geography, Europe form less than 10% of revenue. Further dilute this with the Electronics, Marine, and Land System segment, you get to sleep soundly. I believe "restructured" means scaling down operations in Europe.

The other regions are still doing well, especially US, I think the third wing of growth, after US, might not be Europe, as the management has hoped. Lets hope China pick up the slack, with the new Guangzhou facility contributing.

anybody know why today STE free fall?