Singapore Technologies Engineering (STE) reported its FY15 results this morning, which came in within our expectations; revenue slipped 3.1% to S$6335.0m, about 0.9% below our forecast, while PATMI edged 0.5% lower to S$529.0m, but 0.5% above our estimate. STE has declared a final dividend of 5 S cents as well as a special dividend of 5 S cents, bringing the total FY15 payout to 15 S cents, unchanged from FY14.

Going forward, STE expects higher FY16 revenue; but PBT to be comparable to FY15. It also highlighted that it ended the year with a healthy order book of S$11.7b, of which S$3.8b will be delivered in 2016. We will have more after the analyst briefing later. Maintain BUY and we will be reviewing our fair value shortly.

Source: OCBC Research - 26 Feb 2016