ST Engineering

[Shrivathsa]

Is STE lagging behind STI's recent run upwards? With decent financial performance and >S$12bil order book, is it undervalue?

Any VB members' opinion or enlightenment is appreciated?

Hi Henri,

STE is down around 12% over the last one year.

In contrast the STI ETF is up around 4% for the last one year.

My opinion is that this could be because STE is seen as a defensive play, so, when it is risk on, STE will tend to lag.

In terms of undervalue,

by PE it is 20.3 , which is on the higher side.

Dividend yield is 2.16% which is on the lower side.

Hope this helps

[Lbetter]

Last year, its dividend was 3 cents+4 cents+8 cents =15 cents, thus its dividend was around 4.05% based on its share price @3.7 instead of 2.16%. This year its interim ordinary dividend was improved from 3 cents to 4 cents.

[Shrivathsa]

Sorry, that is correct, picked it up from google finance, guess it excludes special dividends

[Henri]

Thanks guys for your comments and info.

I am long on STE since 2011 and have since accumulating it, obviously I will be a little bias in my opinion, that's why I am asking for comments from VB members.

[steven]

Source: SGX Yield Stocks - Some SGX Stocks with a Minimum of 4% Dividend Yield

ST Engineering

NOTES :
ST Engg : Dividend Payout Reduced from 90% to 80% for FY13 & Will Be Further Reduced to 75% from FY14

[Greenrookie]

Isn't that a good thing since 16 cents dividend is just a tad lower than 16.8 cents of the previous year?

[palantir]

I am long on STE since 2011 and have since accumulating it, obviously I will be a little bias in my opinion, that's why I am asking for comments from VB members.

The defence sector seems like a cash cow to them

[sgd]

at some defense forums I've seen pics of our "decom" navy patrol boats end up in the hands of bangladesh navy.


[Image: 8741416552_1f37ffc252.jpg]

source:http://www.naval-technology.com/news/newsconstruction-begins-on-singapore-navys-first-littoral-mission-warship-4370891/


The Republic of Singapore Navy's (RSN) has started construction on the first of eight littoral mission vessels (LMVs) with the keel laying at Singapore Technologies (ST) Marine in Jurong.

Being built locally by ST Marine together with ST Electronics and DSO National Laboratories, the new LMVs are intended to replace the RSN's 11 aging Fearless-class patrol vessels (PVs) from the 182/9 Squadron under the maritime security task force.
"The vessels will feature advanced combat systems, technologies and modern concepts aimed at boosting the vessel's operational efficiency with a leaner crew size."

The vessels will feature advanced combat systems, technologies and modern concepts aimed at boosting the vessel's operational efficiency with a leaner crew size.

Capable of being deployed for a range of mission modules, the new LMVs will bolster the RSN's potential for the seaward defence of Singapore.

ST Marine built a total of 12 Fearless-class patrol vessels in the 1990s for the RSN, with six armed for anti-submarine warfare missions, while the remaining were intended for patrol operations.

The first LMV is anticipated for delivery in 2016 and all eight vessels are scheduled to be commissioned by 2020.

RSN's LMV programme is managed by the Defence Science and Technology Agency, which is also the systems integrator.

[Greenrookie]

ST Engineering announced results:

http://infopub.sgx.com/FileOpen/ST%20Eng...eID=323282

Aerospace sector is also slowing, partly offset by the electronics segement.

If we look at the aerospace sector,

comparing QoQ change of NP

SIA engineering
53mio to 42 mio

ST Aerospace
55.4mio to 46.4 mio

If we do not over-read numbers, both have the same thereabout fall, although if we compare yoy,

SIA engineering sector is 40% down, look more uglier.

IIRC, SIA engineering and ST aerospace sub-segments are not direct overlap, and in overlapped areas of overhaul and repair(MRO), they also operated mainly at different markets.

This is the segment that is doing very badly. ST still managed to squeeze out a profits, even though revenue tumble more than SIA engineering.

Seem like ST indeed is less volatile

[sgd]

rumors swirling around that the UK light carrier HMS Illustrious could be 1 of the options for Singapore "multi-miission ships", the Illustrious already decom(in 2014) is being replaced by 2 newly build Queen Elizabeth enterprise class aircraft carriers.

The british have been thinking of what to do with the Illustrious ideas include preserving it like a museum, turn it into a hotel sailing ship for the well heeled or sell/give to friendly commonwealth nations.

Recently in 2013 The Illustrious while enroute to the phillippines during typhoon Haiyan humanitarian mission made a short pit stop here to pick up 500 tons of rice and water supplies, could have showcased some of it's abilities.