• Two points to highlight from the latest US$350m engine contract that ST Engineering’s aerospace division won in this report. See details below.
• This latest Jet Airways contract is an add-on engine maintenance from US$350m (secured in 2015) to US$700m, now covering the entire 80 B737NGs through 2024. With this, aerospace has secured S$1.5bn contracts YTD and could match the FY17 record of S$2.8bn, in our view. We expect the group to secure S$5bn in 2018.
• Maintain ADD on ST Engineering with Target Price of S$3.80, based on blended valuations.

Source: CGS-CIMB Research - 01 Sep 2018