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[STOCK] SINGAPORE TECH ENGINEERING LTD
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13-8-2013 6:29 PM
babylon Offline
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Happy: ST Engineering Reports Higher EBIT Compared To 2Q2012

Singapore, 13 August 2013 - Over the second quarter ended 30 June 2013 (2Q2013), the global business sentiment softened and markets were volatile on fears of the tapering of the US economic stimulus programme and softening Chinese economy. Through this period of uncertainty, Singapore Technologies Engineering Ltd (ST Engineering) maintained a steady business momentum with revenue and earnings performance comparable to that achieved for the same period in 2012.

Second Quarter Results

The Group posted quarterly revenue of $1.59b, compared with the prior year revenue of $1.57b for the same period. Revenues for the Group’s Aerospace, Electronics and Land Systems sectors at $506m, $354m and $392m respectively were comparable to 2Q2012. Marine sector’s revenue increased 12% from $277m in 2Q2012 to $311m, due mainly to higher shipbuilding activities from its Singapore operations.

EBIT totalled $177.7m, an increase of 7% from $165.9m a year earlier. Group profit before tax (PBT) was $189.3m versus $187.8m for 2Q2012. All sectors, except for Aerospace sector which recorded comparable PBT, achieved higher PBT growth of between 7% and 13%. Of note, PBT for the prior year period included a non-recurring gain of $12.8m from the disposal of properties by the Aerospace and Land Systems sectors.

Quarterly net profit after tax (Net Profit) was $147.9m, compared with the prior year $143.1m for the same period. This leads to an earnings per ordinary share of 4.78 cents, compared to 4.67 cents in the same period last year.

Six Month Results

For the six months ended 30 June 2013 (1H2013), the Group registered revenue of $3.14b compared to $3.11b in the same period last year. PBT and Net Profit at $351.4m and $281.9m respectively were comparable to 1H2012.

"The Group’s EBIT increased by 7% and Net Profit grew 3%, while Revenue was comparable to 2Q2012.

1H2013 Revenue was comparable to 1H2012, while Net Profit grew 2%. The Group continued to secure new orders and ended the period with a strong order book of $12.7b and cash and cash equivalents including funds under management remained high at $2.1b after payment of final dividends for FY2012 of $428m.

The Board of Directors has approved the payment of an interim ordinary dividend of 3 cents per share, payable on 13 September 2013.

Barring unforeseen circumstances, the Group expects to achieve higher Revenue and PBT for FY2013 compared to FY2012.” ~ TAN Pheng Hock, President & CEO, ST Engineering

Business Highlights

Commercial sales constituted 62% or $1.0b of 2Q2013 revenue. For the rest of the year, the Group expects to deliver $2.8b out of the order book, which stood at $12.7b at end June 2013.

The Group’s four business sectors ended the second quarter with several contracts secured. Specifically, its Aerospace sector announced contracts of about $430m for airframe, component and engine maintenance, as well as VIP interior modifications. Its Electronics sector announced contracts worth $206.8m for projects in the areas of rail electronics, satellite communications and communications systems. For the Land Systems and Marine sectors, there were a number of contract wins which were for regular specialty vehicles and services for the Land Systems sector, and regular ship repair works for the Marine sector.

Interim Dividend

In keeping with the Group’s commitment of rewarding its shareholders, the Board approved an interim ordinary dividend of 3 cents per share, payable on 13 September 2013.

ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenue of $6.38b in FY2012 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities. Please visit http://www.stengg.com.

Media contact:

Lina Poa
SVP, Corporate Communications
ST Engineering
Tel: (65) 6722 1883 / 9696 5453
Email: linapoa@stengg.com

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13-8-2013 7:42 PM
cala Offline
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Consistent performance and dividend payout for many years.

Life is short! Have fun, be merry and enjoy!
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13-8-2013 9:52 PM
Liubei Offline
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wait for the space project to be ripen..no horse run.....
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14-8-2013 1:12 PM
babylon Offline
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Happy: ST Engineering pops the champagne on strong numbers from all segments

Singapore Business Review – 21 minutes ago

But 2H will be even better.

According to CIMB, all of ST Engineering's segments registered earnings growth in 2Q13. 2H13 is expected to be even stronger backed by order book visibility. STE’s earnings growth is set to revert to the pre-global financial crisis levels of 10-12% p.a., justifying the premium valuation of over 20x P/E.

Here's more:

1H13 net profit was broadly in line at 45% of our and consensus FY13 forecasts. Management has guided for at least S$2.8bn revenue to be recognised in 2H13 from the order book, making up 60-70% of its total revenue.

We up our FY13-15 EPS by 1-2% on higher revenues. We keep our Outperform rating and target price, still based on blended valuations. Catalysts are stronger margins from aerospace and M&As.

Growth in all sectors
STE’s PBT rose 17% qoq and 1% yoy to S$189m. Excluding the one-off gains of S$12.8m (property sale in aerospace and land sys) in 2Q12 and S$4.4m (divestment of investments in electronics) in 2Q13, the yoy growth would have been higher at 5%.

Order book stands at S$12.7bn with S$2.8bn expected to be recognised in 2H13. Order book recognition usually account for 60-70% of its total revenue. Commercial segment remains the key contributor at 62% of the group’s revenue.

Higher margins for aero from better rates
Aerospace’s PBT was up 10% qoq and 1% yoy on higher PBT margins of 16.2%, taking the 1H13 PBT margins to 16% (FY12: 15%). This was mainly due to higher recoverable man-hour rates from its US Aircraft Maintenance & Modification (AMM) operations due to the shortage of airframe MRO facilities in the US.

We think the current margin profile is sustainable given its track record in the US (among top three in MRO companies).

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15-8-2013 6:11 PM
babylon Offline
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Cool: OCBC Investment Research

http://www.ocbcresearch.com/pdf_reports/company/STE-130814-OIR.pdf

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15-8-2013 6:41 PM
babylon Offline
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Happy: 3 biggest feats of ST Engineering's aerospace arm this year

BUILDING & ENGINEERING | Staff Reporter,
Singapore Published: 3 hours 32 min ago

Deals and acquisitions fuel growth.

According to DBS, ST Engineering closed the quarter with S$12.7bn orderbook. YTD in FY13, STE has announced close to S$2.65bn worth of new contracts. On the Aerospace front, STE continued to expand capabilities in Aerospace with three new initiatives.

These are i) long-term agreements with UTC Aerospace Systems to provide B787 component MRO, ii) enhancing B757 PTF solutions, and iii) acquisition of Turbo Mach to expand suite of cabin interior services. Shiprepair operations in the US are also expected to start in 4Q.

Here's more from DBS:

Overall PBT margins improved sequentially to 11.9% in 2Q13 from 10.5% in 1Q13, driven by improvements in all segments.

Aerospace recorded healthy PBT margins of 16.3%, driven by higher airframe revenue and better MRO rates achieved during the quarter, especially at the US operations, according to management.

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28-8-2013 12:06 AM
babylon Offline
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Cool: ENGINEERINGS ELECTRONICS ARM LIQUIDATES SUBSIDIARY, PMB PROJECT MANAGEMENT BUSINESS SDN BHD

Singapore, 27 August 2013 – Singapore Technologies Engineering Ltd (ST Engineering) today
announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics),
has placed PMB Project Management Business Sdn Bhd (PMB Malaysia) under members’
voluntary liquidation. PMB Malaysia is an indirect wholly owned subsidiary of ST Electronics.
The liquidation of PMB Malaysia is a result of ongoing business review to streamline capabilities
and optimise resources within the electronics sector and 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.
*****
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group
providing solutions and services in the aerospace, electronics, land systems and marine sectors.
Headquartered in Singapore, the Group reported audited revenue of S$6.380b in FY2012 and
ranks among the largest companies listed on the Singapore Exchange. ST Engineering has
more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in
23 countries and 41 cities. Please visit http://www.stengg.com.
ST Electronics (Singapore Technologies Electronics Limited), the electronics arm of ST
Engineering, delivers innovative system solutions to government, commercial, defence, and
industrial customers worldwide. With a presence in more than 30 cities in 20 countries, ST
Electronics markets its solutions to more than 100 countries internationally. It specialises in the
design, development and integration of advanced electronics and communications systems, such
as broadband radio frequency and satellite communication, e-Government solutions, information
communications technologies and IT, rail and traffic management, real-time command and
control, modelling and simulation, interactive digital media, training services, intelligent building
management and information security. Please visit http://www.stee.stengg.com.

Media Contact: Letticia Fong
Manager, Corporate Communications
ST Engineering
Tel: (65) 6722 1881 / 9735 8251
Email: letticiafong@stengg.com

Magdalen Loh
AVP/Head, Corporate Communications
ST Electronics
Tel: (65) 6413 1788 / 9822 3321
Email: magloh@stee.stengg.com

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29-8-2013 9:04 PM
babylon Offline
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Cool: How ST Engineering could benefit from stronger US dollar

BUILDING & ENGINEERING | Staff Reporter,
Singapore Published: 4 hours 32 min ago

It derives 30% of its revenue from the US.

According to CIMB, it sees a buying opportunity from the recent pullback of STE’s share price. Business fundamentals remain strong but we see STE benefiting from the strengthening of the US$ with positive translation of earnings. Dividend yield has also become more attractive at 4.8%.

Here's more:

STE derives about 30% of its revenue from the US (mostly from Aerospace and Marine). We expect STE to benefit from US$ strength in FY13.

While Singapore's economic growth is expected to grow moderately faster in 2H13 than in 1H13, helped by better global growth (in the US, China and even Europe), the sharp fall in Asia ex-Japan currencies due to worries over a repeat of the1997-98 Asian financial crisis, and US Fed QE tapering expectations may see the S$ staying soft in the coming months.

Our house view expects S$/US$ easing to 1.29 by end-2013. In terms of sensitivity, for every S$0.01 movement in theS$/US$ rate, STE’s revenue is affected by about S$20m and PBT by S$3m.

Assuming 80% of its revenue is unhedged and exposed to translation difference, we estimate the potential earnings impact from Jul-Aug would have been S$5m or 1% to group earnings.

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29-8-2013 10:01 PM
babylon Offline
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Cool: CIMB - Good entry point

https://cimbequityresearch.cimb.com/EFAOnTheWeb/EFAWebAPI/GetDocPDF.asp?DocGUID=CC00A603-ECC4-40E4-A04C-1A82C9C40EC5&A=CIMB

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30-8-2013 9:11 AM
harky Offline
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this counter very ex.. but also got many juice!!!!!!!
(This post was last modified: 30-8-2013 9:12 AM by harky.)
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