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My fav blue chip. Quietly winning the contracts.
Anyone knows how to tell, from the financial statements, the income derive from/related to Singapore military/government spendings?
The Straits Times
Published on Nov 08, 2012
ST Engineering posts 9.5% rise in Q3 profit

By esther teo

SINGAPORE Technologies (ST) Engineering's third-quarter net profit jumped 9.5 per cent to $146.4 million, thanks to better showings in its electronics and land systems businesses.

Revenue for the three months to Sept 30 rose by 11 per cent to $1.54 billion compared with the same period last year, with higher contributions from all businesses except marine.

For the nine-month period, revenue gained 5 per cent to $4.65 billion while net profit surged 13 per cent to $424 million.

ST Engineering noted that revenue for the aerospace business grew by 9 per cent while the electronics sector enjoyed a 10 per cent gain. The land systems sector also saw revenue grow 27 per cent in the period.

But the marine business bucked the trend as revenue declined 7 per cent to $236 million. This was due to lower shipbuilding revenue dragged down by lower revenue recognition from contracts, the group said.

The group's order book as of Sept 30 was $12.5 billion, of which $1.4 billion is expected to be delivered in the last quarter of this year, it added.

Commercial sales accounted for 65 per cent of third-quarter revenue while the firm's cash and cash equivalents, and short-term investments, remained strong at $2 billion, it said in a statement yesterday.

A healthy pipeline of new contracts worth $1.04 billion was also announced in the third quarter. This includes $692 million worth of contracts from the aerospace sector, $179 million from the marine sector in shipbuilding and ship repair and $166 million from the electronics sector.

The group expects to achieve higher revenue and profit before tax for this financial year compared with the previous 12-month period.

Quarterly earnings per share stood at 4.77 cents, compared with 4.39 cents a year earlier, while net asset value per share came in at 55.19 cents, up from 52.96 cents for the same period last year.

ST Engineering's shares closed up one cent to $3.60 yesterday.
(10-05-2012, 09:12 AM)violinist Wrote: [ -> ]Anyone knows how to tell, from the financial statements, the income derive from/related to Singapore military/government spendings?

I also vested.

singapore defense budget growing every year 2011 was over 12 billion bucks.

It seems like they have so much money they can buy a lot of things every year but I guess that most of the defense budget goes into maintaining equipment that we have in the current inventory only once in a long while we will buy new things.

Based on past readings, generally to well equip even a small army of 10,000 you need to buy 3-4 times that equipment just to support 1 person because things break down, uniforms can get torn, boots get worn out rifles fire all the time will jam and spoil so that means everything needs redundancy and you need to spend for maintaining that redundancy also.

So you imagine just to maintain in peace time 380,000 reservists in sg how much the cost every year to cater for training meals equipment fuel, then you get into the vehicles planes ships that we have and you will get the picture where most of the money is going and if they start buying equipment frequently the logistic behind the scene will start to mushroom cost will also go up.
Defense budget that goes into the pay of NS men (whether regular/conscript) and the equipment, running cost of the army camps do not go into ST's book, that's for sure. But the related spending, the outsourced equipment purchase, maintenance, and special projects that ST undertake for Mindef or related entities, those should go into ST's P&L. I know from personal experience that the margin for both manpower and equipment are marked up pretty high. I don't know whether they can hide these from auditors or the public on the pretense of security.
see the british "warthogs" (broncos) in action in afganistan from 41:47 onwards Tongue

ST Engineering posts 9% rise in full-year net profit to $576 mil

ST Engineering announced that it achieved a record $6.83 billion in sales that for financial year ended 31 December 2012 (FY2012), a 6% growth year-on-year.

Net profit after tax rose 9% to $576.2 million compared to the same period last year.

FY2012 revenues for the Aerospace, Electronics and Marine sectors were $2 billion, $1.6 billion and $1 billion respectively, a growth of between 5% and 15%. Revenue of $1.5 billion for Land Systems sector was comparable year-on-year.
Singapore, 30 January 2013 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that the Group has been awarded a contract by the Ministry of Defence (MINDEF) for the design and build of eight new vessels. This new development attests to the Group’s core strength of providing integrated capabilities and solutions to support its customers.

The Group’s marine arm, Singapore Technologies Marine Ltd (ST Marine) will build the eight vessels at its Singapore Benoi Yard. Singapore Technologies Electronics Limited (ST Electronics), the Group’s electronics arm, will supply the core combat systems and combat system integration solutions. ST Marine will carry out the platform system integration as the lead system integrator.

Design of the vessels will commence immediately and the delivery of these vessels is expected to be from 2016 onwards. These new vessels will replace the Republic of Singapore Navy’s existing Fearless-class Patrol Vessels, indigenously designed and built by ST Marine in the 1990s.

“We are honoured to be awarded this contract by MINDEF, which reflects the excellent partnership between MINDEF and ST Engineering. It also demonstrates our continuing efforts and commitment to develop indigenous capability to better support MINDEF in the area of design, construction, operations and support.” ~ NG Sing Chan, President, ST Marine

As we are under contractual obligation to observe confidentiality in respect of the contract, we are unable to disclose any further details.

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

In a release, Singapore Technologies Engineering Ltd (ST Engineering) announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics), has applied to the authorities in the People’s Republic of China (PRC) to deregister ST Electronics (Sichuan) Co., Ltd. (STEC).
STEC is a wholly owned subsidiary of ST Electronics (Satcom & Sensor Systems) Pte. Ltd., which in turn, is a wholly owned subsidiary of ST Electronics.
The deregistration of STEC is part of an ongoing review to streamline operations and to optimise resources for ST Electronics’ sensor and satellite related businesses. STEC’s primary operations as a production house for sensor and satellite related radio frequency and electronic products have been consolidated into ST Electronics (Satcom & Sensor Systems) Pte. Ltd.’s operations in Singapore.
The deregistration of STEC is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
ST ENGG, SIA ENGG, and SAT-Historically, which one gives the best D. yield? i think ST. Engg gives the worst D. yield.
For those vested and interested...

ST Engineering Q2 net profit rises 3%

SINGAPORE -- Singapore Technologies Engineering, a defense contractor and aircraft maintenance company, said Tuesday second-quarter net profit rose 3 per cent because of improved profitability in its electronics, marine and land systems business, the Dow Jones news agency reported.

Net profit for the three months ended June was S$147.9 million compared with S$143.1 million a year earlier, the company said in a statement.

Revenue rose 2 per cebt to S$1.6 billion from S$1.57 billion.
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