ST Engineering- Quick takeaways from analysts briefing
- ST Engineering(STE) appears to be pleased by the 3Q results. Excluding the impairment charge of S61m( which STE announced in October), 3Q's net profit would have risen by 3%.
- STE indicted that final payout will reflect the true business conditions, ie the S$61m charge might not be taken into consideration in assessing the final dividend. STE specifically indicated that they will attempt to " defend" the 15 S cents payout, suggesting a high likelihood of final 10 S cents dividend. Total Dividend yield stands at 4.8% at $3.10.
- Concerns relating to the marine division exposure to the O&M sector appear to have been alleviated somewhat as cost rationalisations and a venture into oceanographic research vessels, helped boost GP margins. The division was also aided by defense related ship-repair work.
- The Land Systems will be exiting out of the China's commercial business but its speciality vehicle business is faring well in the US and could benefit from greater infrastructure spending.
- STE also appeared to be confident of new capabilites, ranging from investments in cyber security, data analytics to satellite imagery.
//amazon
