ST Engineering - RHB Invest 2019-05-29: Smart City Revenue To More Than Double By 2022

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SINGAPORE TECH ENGINEERING LTD (SGX:S63)

ST Engineering - Smart City Revenue To More Than Double By 2022

• Singapore Government will award an estimated SGD2.5-2.7bn worth of info-communications and technology (ICT) contracts in FY19 (Apr 2019 to Mar 2020). 
• Over 60% of the ICT contract value will go towards further developing five platforms that are key to meeting the outcomes of the Digital Government Blueprint, which sets out digital transformation targets for the Government to achieve by 2023.
• The five platforms are:
  1. Singapore Government Technology Stack, a technology stack that allows public agencies to develop and deploy digital services more quickly and securely;
  2. National Digital Identity (NDI), a trusted digital credential for users to transact with the Government and businesses;
  3. Smart Nation Sensor Platform, a nationwide sensor platform that collects, shares and analyses data;
  4. moments of Life, an integrated platform of different government services relevant to each citizen’s stage of life; and
  5. Adaptive Digital Workplace, a digital platform for public officers to collaborate better with one another.
• See The Business Times report. 

Comments

• ST Engineering (SGX:S63)’s Smart artificial intelligence and robotics are used to provide solutions to enable better management of a city’s transportation services, urban development, physical & digital security needs, as well as utility services.
• As a part of its 5-year business plan, ST Engineering expects its Smart City revenue to more than double by 2022 from SGD1bn in 2017.
• As a key, we believe ST Engineering will be one of the key contenders to win some of the upcoming Smart Nation contracts.
• Maintain BUY, Target Price: SGD4.45.

Singapore Research RHB Securities Research | https://www.rhbinvest.com.sg/ 2019-05-29

SGX Stock Analyst Report BUY MAINTAIN BUY 4.450 SAME 4.450