Stocks for action Banks and conglomerates are reasonably valued and offer EPS growth along with high dividend yields. We include stocks that could rerate on stock-specific drivers over the next two quarters.
Stock Rating Price Price target
OCBC (OCBC SP) BUY 8.65 11.80
Fraser & Neave (FNN SP) BUY 5.59 6.55
Keppel Corp (KEP SP) BUY 8.76 11.00
ST Engineering (STE SP) BUY 3.19 3.90
SATS (SATS SP) BUY 2.77 3.40
Noble Group (NOBL SP) BUY 1.66 2.10
Keppel Land (KPLD SP) BUY 3.84 4.68
Biosensors (BIG SP) BUY 0.80 1.20
Venture Corp (VMS SP) BUY 8.85 11.50
Pricing as of 17 August, 2010; local currency
Showing posts with label ST Engg. Show all posts
Showing posts with label ST Engg. Show all posts
Friday, August 20, 2010
Saturday, August 14, 2010
Singapore Technologies Engineering
Stronger MRO expected in 2011 — Management sees further upside to the MRO
segment since pickup in both air and cargo traffic has yet to completely filter down
towards MRO demand, with selected airlines deferring heavy maintenance to
conserve cash. A 6-12 month lagged effect of air traffic on MRO is expected. On
PTF (passenger to freighter) conversion, possibility of more conversion wins is not
ruled out, replacing B727s with B757s, while delivery schedule for the existing
Fedex contract could be brought forward in 2011, boosting top line growth.
Stronger MRO margins — MRO margins recovered from 8.7% in 1Q09 (trough) to
12.8% in 2Q10 and the trend of improving margin should continue into 2H10-
2011. Better orderbook mix, as well as higher margins achieved on PTF
conversions (post early stage learning curve), are reasons enhancing profitability.
Outlook from China — Management is upbeat on the presence it has established in
China. Growth will be broad based, driven by multiple MRO partnerships, Land
Systems (infrastructure), as well as Electronic products (communication). We
believe revenue contribution could double from current mid single digit level, albeit
from a small base within the next 2-3 years.
Marine business — Management is positive on the marine sector outlook despite
negative headwinds, and opine recent military shipbuilding yard closures in the US
has a minimal impact due to different product mix. Growth strategy remains
unchanged, aligning cost structure to be competitive and targeting both niche
commercial vessels and US government contracts. ST Eng is "SSA" qualified and
able to bid for US military projects. Should it succeed, there will be tremendous
growth potential given the size of the addressable market.
segment since pickup in both air and cargo traffic has yet to completely filter down
towards MRO demand, with selected airlines deferring heavy maintenance to
conserve cash. A 6-12 month lagged effect of air traffic on MRO is expected. On
PTF (passenger to freighter) conversion, possibility of more conversion wins is not
ruled out, replacing B727s with B757s, while delivery schedule for the existing
Fedex contract could be brought forward in 2011, boosting top line growth.
Stronger MRO margins — MRO margins recovered from 8.7% in 1Q09 (trough) to
12.8% in 2Q10 and the trend of improving margin should continue into 2H10-
2011. Better orderbook mix, as well as higher margins achieved on PTF
conversions (post early stage learning curve), are reasons enhancing profitability.
Outlook from China — Management is upbeat on the presence it has established in
China. Growth will be broad based, driven by multiple MRO partnerships, Land
Systems (infrastructure), as well as Electronic products (communication). We
believe revenue contribution could double from current mid single digit level, albeit
from a small base within the next 2-3 years.
Marine business — Management is positive on the marine sector outlook despite
negative headwinds, and opine recent military shipbuilding yard closures in the US
has a minimal impact due to different product mix. Growth strategy remains
unchanged, aligning cost structure to be competitive and targeting both niche
commercial vessels and US government contracts. ST Eng is "SSA" qualified and
able to bid for US military projects. Should it succeed, there will be tremendous
growth potential given the size of the addressable market.
Monday, August 9, 2010
ST Engineering unit acquires remaining 30% stake in ST Aerospace Training Academy
Singapore Technologies Engineering today announced that its aerospace arm, Singapore Technologies Aerospace, has acquired the remaining 30% equity stake in ST Aerospace Training Academy (STATA) through its wholly-owned subsidiary, ST Aerospace Engineering.
The equity stake was acquired from the other existing shareholder, Aviation Training Academy (Singapore), for $4 million. With this acquisition, STATA becomes a wholly owned subsidiary of ST Aerospace Engineering.
Managed and operated by ST Aerospace as part of its global network, ST Aerospace’s commercial pilot training academy is the first non-airline affiliated flight training organisation in Singapore to offer commercial pilot training services to network airlines, low cost-carriers and individuals.
Written by The Edge, Friday, 06 August 2010 18:08
The equity stake was acquired from the other existing shareholder, Aviation Training Academy (Singapore), for $4 million. With this acquisition, STATA becomes a wholly owned subsidiary of ST Aerospace Engineering.
Managed and operated by ST Aerospace as part of its global network, ST Aerospace’s commercial pilot training academy is the first non-airline affiliated flight training organisation in Singapore to offer commercial pilot training services to network airlines, low cost-carriers and individuals.
Written by The Edge, Friday, 06 August 2010 18:08
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