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
3.13
Down
3.130
