Towards Financial Freedom
ST Engineering - Meeting Expectations
ST Engineering (STE)'s 2Q13 PATMI edged up 3.3% y-o-y to SGD148m, within our expectations. Its orderbook of SGD12.7bn supports our 6.7% earnings growth forecast for FY13. We continue to like STE for its solid fundamentals, with a 31% ROE and a 4.2% yield. Maintain BUY, with a DCF-derived TP of SGD4.70. The company will distribute an interim dividend of three cents a share on 13 Sept 2013.
- 2Q13 results within expectations. STE's 2Q13 results were in line, with 2Q13 and 1H13 PATMI accounting for 24% and 46% of our and consensus' FY13 estimates respectively. Given that 1H has historically been weaker than 2H, Management expects higher revenue and PBT in 2H13 compared to 1H13.
- Broad-based growth. 2Q13 PATMI grew 3.3% y-o-y and 10.3% q-o-q to SGD148, while PBT margins remained stable, declining by a marginal 0.1ppt y-o-y to 11.9%. STE recorded growth across all its business segments on a PBT level. Its key aerospace segment's PBT growth was muted (+0.9% y-o-y), partly due to a SGD7m disposal of property gain in 2Q12.
Source: OSK
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
