ST Engineering - OCBC Investment 2016-10-17: Secures S$520m of new aerospace contracts

ST Engineering - OCBC Investment 2016-10-17: Secures S$520m of new aerospace contracts SINGAPORE TECH ENGINEERING LTD S63.SI

ST Engineering - Secures S$520m of new aerospace contracts

  • Singapore Technologies Engineering (STE) announced last Friday that its aerospace arm, ST Aerospace, has secured new contracts worth S$520m in 3Q16. These projects range from line and airframe maintenance to component repair and overhauls. 
  • The total contract value includes the passenger-to-freighter conversion of four Airbus A330-300 for DHL Express as announced in Jul 16. 
  • And among the line and heavy maintenance contracts was a five-year agreement with an international airline to provide heavy maintenance support for the airline’s B767 and B777 aircraft fleet. 
  • Recall that STE was sitting on an order book of S$11.6b as at end 2Q16, of which it expects to deliver about S$2.5b over 2H16. That said, these new contracts are not expected to have material impact on STE for FY16. 
  • Maintain HOLD on STE, with an unchanged FV of S$3.13 for now. 
  • Note that STE is expected to announce its 3Q16 results before trading hours on 10 Nov 2016.




Carey Wong OCBC Investment | http://www.ocbcresearch.com/ 2016-10-17
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 3.13 Down 3.130



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