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UMS Holdings (SGX:558) Swing Trade Analysis and FY2025 Outlook

Main Takeaway:
UMS Holdings is trading at S$1.34 after a recent pullback, with technical indicators showing short-term weakness but potential support near S$1.32. Analysts forecast a rebound driven by strong AI-led semiconductor demand, with consensus price targets averaging S$1.76 (upside ~31%). MAS has designated UMS a direct beneficiary of its Equity Market Development Programme (EQDP), reinforcing positive medium-term fundamentals.

MAS EQDP Status

DBS notes UMS is a direct beneficiary of the Monetary Authority of Singapore&rsquo s Equity Market Development Programme, reflecting strong equity and dividend criteria under EQDP.

Probability of Achieving Better FY2025 Results

Analyst Growth Assumptions: Revenue +10&ndash 14%, net profit +16&ndash 20% on recovery in semiconductor equipment demand and AI-driven orders.
Order Backlog & Capacity: New Penang plant ramp-up and expanded Tampines capacity support volume growth.
Macro Tailwinds: Global semiconductor market projected +15.7% in 2025. Estimated Probability:

With consensus forecasts and strong EQDP support, there is a ~60% probability UMS will report improved FY2025 results, assuming no major market disruptions. Active swing traders should wait for clearer technical reversal signals before initiating new positions. From Perplexity AI but DYODD

Joelton ( Date: 29-Aug-2025 12:19) Posted:

UMS Integration confident it can turn Trump tariffs into an advantage, says CEO Andy Luong

Never ever challenge China to a fight, if you don&rsquo t want to end up a loser, says Andy Luong, CEO of UMS Integration, referring to the US-led tariffs battering global trade and economic growth.

While chips made in China are &ldquo cheap and good&rdquo , US customers are not buying them at present for fear of a Trump tantrum.

To combat this, the Chinese government is helping companies sell their products by providing subsidies. Chinese manufacturers also have a knack for breaking into new markets &mdash patents offer little protection since they can be sidestepped easily.

However, there could be an unexpected beneficiary in the trade war &mdash UMS.

According to CEO Andy Luong, who is also UMS&rsquo s controlling shareholder, tariffs will benefit the company as customers find it more expensive to buy chips manufactured in countries like China or Cambodia compared to those manufactured in Singapore via UMS.

Quality over quantity

Luong says &ldquo everything is good about Singapore&rdquo , where UMS&rsquo s headquarters is located, except that it is an expensive place to do business.

&ldquo But being expensive doesn&rsquo t mean it&rsquo s bad. We can make use of the higher-value environment to produce high-value products,&rdquo adds Luong, likening it to high-end luxury brands that sell quality products.

&ldquo We want to present ourselves as a more premium supplier.&rdquo

Luong&rsquo s vision isn&rsquo t far off the mark, given that the city-state is being recognised by a rising number of companies such as Airbus and Rolls-Royce, who have opted to base certain manufacturing processes here. As such, UMS has proposed that its customers move the parts that are currently made in Europe or America to Singapore, where its facilities can provide ample support.

However, for UMS to remain profitable and maintain its margins, Luong recognises the need to streamline the company&rsquo s processes and outsource certain parts of the production line to other countries. In February 2009, the company&rsquo s hub in Penang began operations. In July 2024, it announced an expansion with the purchase of more land in Penang Science Park North.

In Singapore, UMS will conduct its new product launches and research and development, while its Malaysian hub complements it with its manufacturing facilities.

UMS&rsquo s major expenses are in Singapore dollars (SGD) or Malaysian ringgit. &ldquo We keep enough local currency to pay for overheads, although the bulk of our money is in USD,&rdquo says Luong.

At present, the strong SGD is helping UMS, given that all its purchases, such as its original equipment manufacturer (OEM) parts, raw materials and certain expenses such as salaries and overheads, are paid in USD, says Luong.

Even for machinery and equipment, the company buys them in Japanese yen or euros due to better rates. For example, UMS&rsquo s major customer is Nasdaq-listed, California-headquartered Applied Materials.

Bet that paid off

To stay ahead of Singapore and the region&rsquo s corporate and economic trends, click here for Latest Section

To an extent, Luong comes across as a betting man whose calls have mostly paid off. Born in Vietnam, he migrated to the US in 1979, lived his version of the American Dream, but decided to make a big bet on Singapore in 1996. He moved his machining company, then named &ldquo Long&rsquo s Manufacturing&rdquo , from Silicon Valley to Singapore after being approached by the Economic Development Board (EDB).

Initially, he questioned whether the move to Singapore was a &ldquo very dumb&rdquo decision. After all, he had no customers or a presence here. However, labour costs and &ldquo terrible&rdquo work ethics in the US pushed him to accept Singapore&rsquo s tax incentives of 10 years and government land offers.

UMS was born after Luong entered into a joint venture with URACO Holdings in 1996. The company was acquired by Luong in 2000 and was subsequently renamed UMS Semiconductor.

To this day, the group continues to be headquartered out of its original 22 Changi North Crescent address.

In the early days, the company machined and completed their products before shipping them to the US. &ldquo We did that for around three to four years,&rdquo says Luong, who initially adopted work for UMS from his existing US facility by taking orders and sending the material to Singapore by container for processing.

This led a key customer of UMS to take notice of its stable operations in Singapore. He recalls: &ldquo In the 2000s, they, let&rsquo s call them customer A, set up their office in Singapore and we took them on. So, we were actually an example of how moving from the US to Singapore could be successful.&rdquo

Luong&rsquo s second bet in 2007 was to set up UMS&rsquo s Penang facility. Today, he says UMS has about 400 employees in Singapore and around 1,000 in Malaysia. He says, &ldquo We use the best of both countries. That&rsquo s why in the last 10 to 15 years, we have been profitable, because we streamlined our process and integrated our operations vertically. We also don&rsquo t have to spend a lot of time sourcing [for business] in Malaysia.&rdquo

In its most recent 2QFY2025 ended June results, sales from UMS&rsquo s Malaysia operations surged 270% y-o-y, contributing to the 20% y-o-y group revenue increase to $67.3 million. In tandem, earnings grew 10% y-o-y to $10.3 million. With a second interim dividend of one cent per share, the total dividend payout for the half-year came up to two cents.

According to UMS, the revenue growth in Malaysia was due to a stronger order flow from the group&rsquo s new major customer, which Luong dubs customer &ldquo B&rdquo .

Luong says, &ldquo We spent two years qualifying the parts they needed. Finally, we are starting to ship products and then we will work on a roadmap to qualify more parts. This can take as long as a year to qualify, especially if the part is critical.&rdquo

Luong&rsquo s third bet is increasing capacity &mdash this cost him $120 million. Done two years ago, the sum went towards building new factories, buying new machinery and upgrading existing facilities. He says, &ldquo It&rsquo s not a small amount of money, but if I don&rsquo t invest, how could I get a job from the customer? If you look back, it&rsquo s because I invested in a customer who saw the potential in UMS and had the confidence to move jobs from America [to Singapore].&rdquo

In Malaysia, UMS bought a 235,000 sq ft plot next to its Penang facility for RM15.2 million ($4.63 million) to ramp up capacity.

A separate factory in the country was also purchased for $8 million, should even more capacity be required. &ldquo It has no jobs, no operators. We&rsquo re building up the automation line there, so it&rsquo s not in operation yet,&rdquo says Luong.

He adds, &ldquo It&rsquo s just a sales pitch. You want to tell potential customers that you have ready capacity, so when business finally arrives, we will be the first to receive without worries about the delay of a customer&rsquo s expectation.&rdquo

Glass half-empty

In many ways, Luong&rsquo s passion for business has not faded. Asked if the glass is half-empty or half-full, he says: &ldquo The empty half is better. Why? You can always top it up, look for more nourishment. If you say it&rsquo s half-full, then you&rsquo re saying it&rsquo s gao dim (Cantonese for &lsquo task completed&rsquo ) already, you don&rsquo t want to work anymore.&rdquo

Luong&rsquo s optimism has been reflected in UMS&rsquo s success over the years. The group&rsquo s share price, since opening at 15.6 cents in May 2001, recently peaked at an all-time high of $1.57 on Aug 8. As at Aug 22, it was trading at $1.35 or 28.57% up for the year. UMS, which debuted on the Bursa on Aug 1, closed at RM2.00 (61 cents) on Aug 22.

UMS is among the handful of mid-caps that have caught the attention of the investment community for its growth prospects, with further positive sentiment following the recent measures by the government to boost the local market. &ldquo I think with the MAS coming in, it&rsquo s giving confidence to the market that business is good, the growth is there and the government is committed to it,&rdquo says Luong.

The view is shared by DBS Group Research&rsquo s Ling Lee Keng, who raised her target price on the stock to $1.84 from $1.34 previously, with a &ldquo buy&rdquo call on UMS benefitting from the EQDP, among other reasons.

&ldquo With its main facilities located in Malaysia, UMS stands to benefit from the ongoing shift in global supply chains amid China-US trade tensions. The group is well-positioned to capture new growth opportunities as more companies diversify operations out of China and the US,&rdquo she says in her July 24 report.

&ldquo UMS expects to benefit from the AI-driven global chip sector rebound and rising shift of global semiconductor supply chain,&rdquo states UOB Kay Hian&rsquo s John Cheong in his Aug 14 note, where he kept his &ldquo buy&rdquo call and $1.73 target price, which was raised to this level from $1.36 on July 16.

William Tng of CGS International is similarly upbeat. In his Aug 21 note, he resumed coverage on this stock with an &ldquo add&rdquo call, from &ldquo hold&rdquo , and raised his target price to $1.87 from $1.06. &ldquo The successful secondary listing on Bursa should widen its potential pool of investors and help support improved valuations, in our view,&rdquo says Tng.

Succession plans

At 65, Luong is now looking for a successor who is &ldquo much younger&rdquo , preferably in their 40s. The candidate must also be found within the next three years.

&ldquo We have been looking for someone either within our shareholders or for someone from the outside &mdash we haven&rsquo t decided yet. The best case would be a family member this way, the wealth would pass on to them,&rdquo says Luong.

He adds: &ldquo For someone from the outside ... The only risk is that they have nothing to lose. If they screw it up, it&rsquo s not their problem. But if it&rsquo s a shareholder of the company, that will be more secure in a way. You know, in our industry, it really doesn&rsquo t matter.&rdquo

Until the time comes, the CEO looks set on helming UMS the only way he knows how: through hard work and luck.

&ldquo The harder you work, the luckier you are. Luck will be about 30% of your success, but for crying out loud, you must work for the rest of it,&rdquo sums up Luong.

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special dividend potential of S$0.25- 0.30 per share provides additional return cushion, while the STI reserve list inclusion enhances institutional demand dynamics.

sfw2124 ( Date: 08-Sep-2025 21:09) Posted:

The 2- 6 month timeframe aligns perfectly with expected catalyst realization, Error Note

sfw2124 ( Date: 08-Sep-2025 21:05) Posted:

Olam Group presents an exceptional risk-adjusted opportunity for both institutional and swing traders. The convergence of fundamental catalysts Olam Agri divestment, balance sheet improvement, STI inclusion) with attractive technical levels creates a compelling investment case. For Fund Managers: The stock meets stringent institutional criteria with strong governance, clear transformation pathway, and meaningful exposure to essential food systems. For Swing Traders: The 26 month timeframe aligns perfectly with expected catalyst realization, offering asymmetric risk/reward with limited downside below $1.00 and significant upside to $1.20+ levels. The special dividend potential of S$0.250.30 per share provides additional return cushion, while the STI reserve list inclusion enhances institutional demand dynamics. Current levels around $1.04 represent attractive accumulation opportunity ahead of the value unlocking events expected in Q4 2025

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The 2- 6 month timeframe aligns perfectly with expected catalyst realization, Error Note

sfw2124 ( Date: 08-Sep-2025 21:05) Posted:

Olam Group presents an exceptional risk-adjusted opportunity for both institutional and swing traders. The convergence of fundamental catalysts Olam Agri divestment, balance sheet improvement, STI inclusion) with attractive technical levels creates a compelling investment case. For Fund Managers: The stock meets stringent institutional criteria with strong governance, clear transformation pathway, and meaningful exposure to essential food systems. For Swing Traders: The 26 month timeframe aligns perfectly with expected catalyst realization, offering asymmetric risk/reward with limited downside below $1.00 and significant upside to $1.20+ levels. The special dividend potential of S$0.250.30 per share provides additional return cushion, while the STI reserve list inclusion enhances institutional demand dynamics. Current levels around $1.04 represent attractive accumulation opportunity ahead of the value unlocking events expected in Q4 2025.

spore1 ( Date: 06-Sep-2025 13:05) Posted:

Price may rise up to test 1.1

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Olam Group presents an exceptional risk-adjusted opportunity for both institutional and swing traders. The convergence of fundamental catalysts Olam Agri divestment, balance sheet improvement, STI inclusion) with attractive technical levels creates a compelling investment case. For Fund Managers: The stock meets stringent institutional criteria with strong governance, clear transformation pathway, and meaningful exposure to essential food systems. For Swing Traders: The 26 month timeframe aligns perfectly with expected catalyst realization, offering asymmetric risk/reward with limited downside below $1.00 and significant upside to $1.20+ levels. The special dividend potential of S$0.250.30 per share provides additional return cushion, while the STI reserve list inclusion enhances institutional demand dynamics. Current levels around $1.04 represent attractive accumulation opportunity ahead of the value unlocking events expected in Q4 2025.

spore1 ( Date: 06-Sep-2025 13:05) Posted:

Price may rise up to test 1.10

Alignment ( Date: 06-Sep-2025 11:34) Posted:

Interest costs coming down would be a big benefit for Olam but even better would be if cocoa and coffee prices start coming down. Cocoa prices now back down to end 2023 levels but coffee prices still high.

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All of Wee Hurʼ s confirmed developments fall into two categories&mdash those already in the current order book, and those still awaiting recognition in upcoming quarterly or full year statements. Projects Already in the Order Book HDB Building Contracts &ndash The S$439 million of newly awarded HDB BTO and upgrading projects (announced May 2025) are included in the order book, which stood at S$629 million as at 30 June 2025. Workersʼ Dormitories &ndash The Pioneer Lodge expansion 3 144 beds) completed in June 2025 is also in the backlog. Australian Subdivisions &ndash Lowood 358 lots) has commenced earthworks and is fully contracted into the order book. Cryna 2 000 lots) received Development Approval and is partially booked on a design and build basis. Projects Pending in 3Q 2025 or FY 2025 Results Bartley Vue Final Completions &ndash Although 99% sold, the final 1% of units will only be handed over in 4Q 2025, with remaining revenue and profit recognition reflected in the 3Q and FY 2025 results. Cryna Subdivision &ndash While DA was secured mid-2025, mass-grading and main infrastructure contracts will be tendered across 3Q 2025. Those contract awards S-curve booking) will be recognized in order-book figures when confirmed and then reported in subsequent quarterly updates. Park Central Brisbane &ndash Mixed-use enabling works are due to be tendered in late 2025. These will only enter the order book once construction contracts are awarded, likely in 1Q 2026, and thus will not appear in FY 2025 but will be disclosed as &ldquo projects secured after period end.&rdquo In short, the core H1 2025 order book already includes all fully awarded works to date, while handover revenue for Bartley Vueʼ s last units and new Australian contract awards will be captured in the 3Q 2025 interim results and FY 2025 annual report DYODD

ysh2006 ( Date: 05-Sep-2025 16:16) Posted:

Analyst said Wee Hur might develop a piece of big land bank in Singapore into housing like condo or mix with shopping development that might generate income ...

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With due respect to all the opinions earlier expressed here - my take based in the technical chart is that Hong Leong Asia(H22) is over extended/ Why? Hong Leong Asia (H22) is labeled &ldquo over-extended&rdquo and recommended for partial trimming because both price action and volume/momentum indicators show it trading well above its medium-term equilibrium with signs of exhaustion Analysis by Perplexuty AI Pro but DYODD

Iceycoke ( Date: 22-Aug-2025 17:52) Posted:

Today another marvellous performance. 2.40.
I like having 2.50 next week but I doubt. Hope you are right.

Rightstock ( Date: 22-Aug-2025 14:39) Posted:

HLA also collect very good dividends from BRC and Yuchai.

Hope to see HLA reached $2.50 next week and $3.00 by end of 2025

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Verification and Professional Assessment of Wee Hur Holdings E3B 1H 2025 Results Executive Summary - Assessment Accuracy The comprehensive assessment provided demonstrates exceptional analytical rigor and accuracy in evaluating Wee Hur Holdings' 1H 2025 results announced on August 14, 2025. After thorough verification against official financial statements and market data, the analysis substantially aligns with factual reporting and professional investment analysis standards. Verification of Key Financial Metrics ✅ Accurate Financial Performance Analysis Revenue Growth: Confirmed 43% increase to S$156.0 million Gross Profit Surge: Verified 89% growth to S$84.3 million 1 1 Net Profit Decline: Confirmed 42% decrease to S$38.7 million 2 1 Cash Position Strengthening: Validated increase to S$277.1 million 2 1 Dividend Enhancement: Confirmed 150% increase in interim dividend to S$0.005 per share ✅ Segment Performance Accuracy The analysis correctly identified segment dynamics: Property Development: 158% revenue growth to S$47.0 million 1 Fund Management: Massive 1,638% growth to S$40.3 million due to Fund I disposal fees ✅ Strategic Catalyst Identification Key growth drivers accurately captured: 3 4 5 Construction: 43% external revenue decline to S$25.6 million Workers' Dormitory: Stable performance at S$42.0 million 1 1 Pioneer Lodge: 10,500-bed capacity addition by end-2025, representing 66% capacity increase Construction Order Book: Record S$629 million with visibility through FY29 4 5 1 1 PBSA Monetization: A$1.6 billion Fund I disposal while retaining 13% strategic stake Market Context and Industry Outlook Validation Singapore Construction Sector Fundamentals The assessment correctly identified favorable industry dynamics: 6 7 8 2025 Construction Demand: BCA projects S$4753 billion, representing 6.320% growth 9 10 Medium-term Outlook: Strong pipeline from 20262029 with S$3946 billion annual demand Public Housing Drive: Over 50,000 BTO flats planned for 20252027 Workers' Accommodation Market Analysis accurately reflects supply-demand fundamentals: 3 4 6 9 Structural Shortage: New dormitory standards reducing sector supply while demand remains robust 5 4 Rental Rate Sustainability: High occupancy and pricing power confirmed across industry reports 5 3 Tuas View Extension Catalyst: Lease extension probability high given construction demand projections Australian PBSA Market Recovery The assessment correctly identified positive sector tailwinds: 11 12 13 Investment Revival: 2025 PBSA transactions reached A$1.8 billion vs A$116 million in 2024 Policy Clarity: Removal of visa cap uncertainty supporting sector confidence 13 11 14 Supply-Demand Imbalance: Continued undersupply supporting rental growth and occupancy Valuation and Investment Recommendation Assessment Current Valuation Metrics - Verified Trading Price: S$0.68 (as of August 1415, 2025 15 2 NAV per Share: S$0.67, representing minimal premium to book value P/E Ratio: 11.6x on FY2024 earnings, attractive for growth profile Enterprise Value: S$348 million after substantial cash position 1 16 Analyst Target Prices - Market Consensus Professional research houses provide target prices ranging: Phillip Securities: S$0.62 target price with BUY rating 17 18 CGS International: S$0.91 target price (adjusted for lease extension scenarios) UOB Kay Hian: S$0.55 target price with BUY rating Risk Assessment Validation 19 The analysis appropriately identified key investment risks: 3 5 4 5 Tuas View Lease Uncertainty: Expires November 2026, though extension probability high Professional Investment Opinion Institutional Investor Recommendation - STRATEGIC BUY Construction Margin Pressure: Industry-wide cost inflation challenges Currency Exposure: AUD fluctuations affecting Australian operations 1 6 Regulatory Changes: Potential policy shifts in dormitory or PBSA sectors 1 The recommendation for 13% portfolio allocation appears well-calibrated based on: Defensive Income Generation: Stable dormitory cash flows with regulatory moats Structural Growth Exposure: Pioneer Lodge expansion and construction order book visibility Balance Sheet Strength: Strong cash position and low gearing provide downside protection Multiple Catalyst Timeline: Clear value drivers over 1824 month horizon Retail Investor Guidance - ACCUMULATE ON WEAKNESS The retail investor strategy of dollar-cost averaging between S$0.650.70 demonstrates: Risk-Adjusted Approach: Building positions over time rather than concentrated bets Valuation Discipline: Target entry below current NAV provides margin of safety Catalyst-Driven Strategy: Timing purchases around positive developments Conclusion - Assessment Quality The comprehensive analysis demonstrates institutional-grade investment research quality with: ✅ Accuracy: All major financial metrics and strategic developments correctly identified and analyzed ✅ Depth: Thorough coverage of business segments, market dynamics, and competitive positioning ✅ Professional Standards: Appropriate risk assessment, valuation methodologies, and investment recommendations ✅ Market Context: Strong understanding of Singapore construction and Australian PBSA sector fundamentals ✅ Actionable Insights: Clear investment recommendations with specific price targets and timing guidance This analysis represents the caliber of research typically produced by leading investment banks and institutional research houses, providing both retail and institutional investors with comprehensive insights for informed decision-making regarding Wee Hur Holdings' investment merits following their 1H 2025 results. The assessment successfully captures the company' s transition from purely operational to capital-light, fee-generating business model while maintaining strong defensive characteristics through essential infrastructure exposure in Singapore' s built environment sector/ DYODD

sfw2124 ( Date: 15-Aug-2025 08:36) Posted:

I have never seen such a well written assessment by Perplexity AI Pro to my question : " Help me do a thorough assessment of Wee Hur(E3B) results and other announcement on 14 Aug 2025 and advise me like an expert investment adviser to Institutional and Retail Investors on the impact to respective share holdings and the diligent price action to sell or hold or buy?" Just for sharing as follows:Financial Performance Analysis Headline Results - Mixed but Fundamentally Strong Wee Hur' s 1H 2025 results reflect a business in transition, with revenue surging 43% to S$156 million driven by property development progress and one-off fund management fees. However, net profit attributable to equity holders declined 42% to S$38.7 million, primarily due to the absence of S$59.9 million in joint venture contributions following the strategic disposal of Fund I. The critical metric is adjusted net profit, which surged 164% to S$61.7 million, indicating robust underlying operational performance across core segments. Strong Financial Position Cash position strengthened to S$277 million (vs S$102 million in 1H 2024 Gearing ratio reduced to 13% - among the lowest in the sector NAV per share of S$0.67 with current trading at S$0.68 representing minimal premium Segment-by-Segment Assessment 1. Workers' Dormitory Business - The Crown Jewel Current Performance: 93% occupancy at Tuas View 15,744 beds) Game Changer: Pioneer Lodge adding 10,500 beds by end-2025 66% capacity increase) Market Dynamics: Structural shortage with new dormitory standards reducing sector supply Revenue Outlook: Projected 55% growth in FY26 Investment Thesis: This segment benefits from a perfect storm of limited supply, regulatory tightening, and sustained construction activity. The Pioneer Lodge expansion positions Wee Hur as a dominant player in a supply-constrained market. 2. Construction Business - Record Momentum Order book reaches record S$629 million (vs S$263 million in Dec 2024 Two major HDB BTO projects worth S$439.4 million secured in May 2025 Revenue visibility extended through FY29 Singapore construction demand projected at S$4753 billion in 2025 3. Property Development - Executing Well Bartley Vue: 100% sold with progressive revenue recognition driving 158% segment growth Mega@Woodlands: 99% sold 517 units) Australia expansion: 358-lot residential project approved in Queensland 4. Australian PBSA Strategic Reset Successfully monetized Fund I portfolio for A$1.6 billion Retained 13% stake in restructured trust managed by Greystar Positive catalyst: Australia raised 2026 international student cap by 9% to 295,000 Y Suites Margaret achieving 76% occupancy despite policy uncertainty Key Investment Catalysts & Timeline Near-term Catalysts Next 12 months) Pioneer Lodge full operations by end-2025 - transformational capacity expansion Construction project execution - S$629 million order book providing revenue visibility Tuas View lease extension decision (expires November 2026 - major value catalyst Australia student cap increase benefiting PBSA operations from 2026 Medium-term Growth Drivers 23 years) Fund III establishment for Adelaide PBSA development 708 beds) Queensland residential development execution Market share gains in workers' dormitory amid sector consolidation Dividend growth supported by strong cash generation Risk Assessment & Mitigation Key Risks Tuas View lease extension uncertainty - expires November 2026 Construction margin pressure from labor and material cost inflation Currency exposure to AUD through Australian operations Regulatory changes affecting dormitory or PBSA operations Risk Mitigation Factors Diversified revenue base across multiple segments and geographies Strong government relationships and regulatory compliance track record Natural hedging through AUD-denominated assets and liabilities Experienced management team with proven execution capability Valuation Analysis & Price Target Current Valuation Metrics P/E Ratio: 11.6x FY2024 earnings) P/B Ratio: 0.6x (significant discount to book value) Market Cap: S$625 million Enterprise Value: S$348 million (after cash) Sum-of-Parts Valuation Workers' Dormitory: S$450500 million DCF, 10% discount rate) Construction: S$315 million 0.5x order book) Property Development: S$80100 million 0.6x P/B Fund Management: S$50 million 12x P/E Net Cash: S$150 million Fair Value Range: S$0.75 S$0.85 per share Investment Strategy Recommendations For Institutional Investors STRATEGIC BUY Target Allocation 13% of Singapore Equity Portfolio Rationale: Structural growth story in workers' accommodation with regulatory moats Strong cash generation and balance sheet flexibility ESG-compliant investment in essential worker infrastructure Diversified revenue streams providing portfolio resilience Entry Strategy: Primary position: S$0.650.70 range Opportunistic additions: Below S$0.60 on market weakness Position sizing: 13% allocation with 1824 month investment horizon For Retail Investors ACCUMULATE ON WEAKNESS Price Target S$0.80 Investment Approach: Core holding strategy: Build position over 612 months Dollar-cost averaging: Monthly purchases of S$0.650.70 Catalyst-driven additions: Increase allocation on positive news flow Dividend reinvestment: Utilize interim dividend of S$0.005 per share Portfolio Allocation: Conservative investors: 23% allocation Growth-oriented investors: 35% allocation Hold period: 23 years to capture full cycle benefits Trading Action Plan IMMEDIATE ACTION Next 12 Weeks) Current price S$0.68 offers reasonable entry point Buy on any dip below S$0.65 Set stop-loss at S$0.60 12% downside protection) KEY MONITORING POINTS Pioneer Lodge operational updates - capacity ramp timeline Tuas View lease extension negotiations - critical value catalyst Construction order book additions - sustainability of growth Australian student policy developments - PBSA segment impact PROFITTAKING LEVELS First target: S$0.750.78 1015% gain) Second target: S$0.800.85 1825% gain) Long-term hold: Above S$0.85 for dividend yield play Conclusion Wee Hur Holdings represents a rare combination of defensive income generation and structural growth in Singapore' s built environment sector. The successful disposal of Fund I has strengthened the balance sheet while retaining upside exposure to Australian PBSA recovery. With Pioneer Lodge set to transform the workers' dormitory business and a record construction order book providing revenue visibility, the company is well-positioned for multi-year outperformance. The risk-reward profile favors accumulation at current levels, with multiple catalysts providing upside optionality while the strong balance sheet limits downside risk. Both institutional and retail investors should consider Wee Hur as a core holding in Singapore equities, benefiting from the country' s infrastructure development and housing needs for migrant workers.

superstartup ( Date: 14-Aug-2025 23:27) Posted:

The PR stated that the Adjusted Net Profit also excludes " share of profit/(loss) from associates and joint ventures" . This is to recognise the partial sale of the Australia Biz.
But then why company did not exclude the one-off performance and disposal fee of Fund I to Greystar, which is the same partial sale of Australia Biz?
" Revenue increased to S$40.3 million from S$2.3 million, mainly due to a one-off performance and disposal fee from the disposal of Fund I to Greystar."
And if we less off this one-off perfrmance and disposal fee, the EPS (from continued operations) will be much lower than stated.

( I stand to be corrected. )

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Key Takeaway

Despite robust 1H2025 results&mdash with revenue up 7% to S$5.92 billion and net profit up 20% to S$403 million&mdash the share price of ST Engineering plunged 6.3% on the day of the announcement due to a &ldquo sell‐ the‐ news&rdquo correction following a remarkable year‐ to‐ date rise of over 80%, combined with valuation concerns and &ldquo overheated sentiment&rdquo in the defence sector.

Drivers of the Price Decline

Sell‐ the‐ News and Profit-Taking
After shares had already soared 84% over the past 12 months, investors took profits once the strong results were fully priced in, triggering a short-term pullback as the market digested the news.
Overheated Sector Sentiment
Analysts highlighted that defence stocks broadly ran ahead of fundamentals, and that ST Engineering&rsquo s share-price momentum had outpaced both the Straits Times Index and peers. This led to concerns of an excessive short-term run-up and prompted portfolio rebalancing away from defence names.
Rich Valuation
- The counter was trading at three standard deviations above its historical average, reflecting a high price-to-earnings multiple that exceeded long-term norms.
- Analysts at CGS International explicitly cited the risk that the market had already priced in aggressive earnings growth for 2026, leaving limited upside from the current level.

Underlying Fundamentals Stay Intact

1H2025 revenue of S$5.92 billion represented a 7% year-on-year increase, with all three business segments contributing to growth.
Net profit attributable to shareholders rose 19.7% to S$402.8 million, driven by margin expansion and cost savings across Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom.
Order book expanded to a record S$31.2 billion as at 30 June 2025, underpinning revenue visibility for the remainder of the year.
Interim dividend of 4.0 cents per share was maintained, demonstrating commitment to shareholder returns.

Conclusion

The sharp share-price decline on Aug 14, 2025, reflects market mechanics&mdash not a deterioration in business fundamentals. A significant YTD rally, coupled with high valuation and overheated sector sentiment, precipitated a sell‐ the‐ news pullback. For long-term investors, ST Engineering&rsquo s growth trajectory, strong order book, and resilient margins remain intact, presenting the recent dip as a potential accumulation opportunity.

Joelton ( Date: 15-Aug-2025 10:31) Posted:

ST Engineering falls 6.3% despite higher first-half profit stock had surged over 80% year to date

[SINGAPORE] Shares of ST Engineering tumbled shortly after trading started on Thursday (Aug 14) despite the group announcing better first-half results pre-market opening.

The counter dropped 6.3 per cent to S$8.40 at the close on Thursday, with 13.3 million shares having changed hands. It had closed at an all-time high the previous day at S$8.96. Investors may have taken profit after the counter&rsquo s impressive run-up in previous months.

Morningstar&rsquo s Lorraine Tan, director of equity research for Asia, told The Business Times: &ldquo The fall in ST Engineering&rsquo s share price can be attributed to overheated sentiment in the defence sector.&rdquo

Year to date, the stock had risen over 80 per cent. It hit S$8.94 on Jul 24, shortly after the company announced S$4.7 billion worth of order wins.

The company posted a 19.7 per cent increase in net profit to S$402.8 million for the first half-year ended June, up from S$336.5 million in the year-earlier period. This was largely due to revenue growth from its commercial aerospace as well as its defence and public security business segments, despite drag from US tariffs and foreign currency exchange.

Citi Research analyst Luis Hilado said in a July note that the 12-month price target for ST Engineering was S$8.40. Shares of ST Engineering were trading at S$8.27 at the time.

&ldquo We see ST Engineering&rsquo s top-line momentum driving operational leverage and margin improvement across its core businesses. We recognise the existence of near-term risks (labour shortages, cost inflation, integration risks) but take positively that a healthy base of contracts to win can provide the economies of scale to offset such,&rdquo Hilado wrote.

&ldquo We believe the steady and predictable growth in the current uncertain market conditions will drive it above its mean valuation,&rdquo he added.

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Executive Summary & Investment Recommendation

INSTITUTIONAL INVESTORS: BUY - Target Allocation 2-4%
RETAIL INVESTORS: STRONG BUY - Price Target S$0.85-0.95

CSE Global presents an exceptionally compelling investment opportunity positioned at the intersection of three powerful megatrends: electrification, data center expansion, and AI infrastructure development. Despite modest headline revenue growth, the company demonstrates strong operational leverage, expanding margins, and a strategically positioned order book that should drive accelerated growth through 2025-2027.

Key Financial Highlights - Solid Fundamentals with Strong Operational Leverage

CSE Global' s 1H 2025 results demonstrate resilient operational performance with revenue growing 2.8% to S$440.9 million despite challenging market conditions. More importantly, the company achieved strong operational leverage with:

EBITDA growth of 3.0% to S$39.5 million, expanding margins to 9.0%
Net profit growth of 8.5% to S$16.3 million, demonstrating excellent cost control
ROE improvement from 11.8% to 13.0% (annualized)
Stable gross margins at 27.9% despite inflationary pressures

The temporary negative operating cash flow of S$27.4 million reflects higher working capital tied up in large projects - a positive leading indicator of revenue acceleration in subsequent quarters.

Segment Analysis - Strategic Positioning Across Growth Markets

1. Electrification (48.8% of Revenue) - The Growth Engine

Revenue stable at S$214.8 million despite USD weakness
EBITDA surged 14.4% to S$24.8 million, including S$5.5 million one-off gain
Constant currency growth of 0.5% demonstrates underlying strength
Data center focus positions CSE perfectly for AI infrastructure boom

Investment Thesis: This segment benefits from the global electrification megatrend, particularly data center power infrastructure. With Singapore' s data center market growing at 5.08% CAGR to S$5.6 billion by 2030, CSE is ideally positioned.

2. Communications (29.0% of Revenue) - Acquisition-Driven Expansion

Strong revenue growth of 12.7% to S$128.0 million
Acquisitions contributed S$17 million - Chicago Communications integration proceeding well
EBITDA flat due to lower-margin ANZ business, but improving mix expected
Order intake up 18.9% indicating strong pipeline

3. Automation (22.2% of Revenue) - Transitional Phase

Revenue stable at S$98.1 million
EBITDA impacted by S$5.1 million write-off of water treatment assets
Underlying performance solid with focus on infrastructure and cybersecurity

Order Book Analysis - Strong Visibility but Normalization

The order book of S$573.8 million (down from S$692.3 million) reflects normal project execution patterns rather than demand weakness:

Electrification order intake of S$130.9 million shows selectivity in project choice
Communications order intake up 18.9% to S$136.1 million demonstrates momentum
Flow business (67% of revenue) provides stable recurring revenue base

Key Catalyst: The S$90.7 million electrification contract secured in November 2024 will boost FY25-26 performance significantly.

Strategic Positioning - Riding Multiple Megatrends

Data Center Boom

Singapore market: S$4.16 billion (2024) &rarr S$5.60 billion (2030)
Global market: Growing at 8% CAGR, with APAC leading at 12%
CSE' s role: Critical electrification and communications infrastructure provider

AI Infrastructure Demand

Power requirements: AI data centers require 3-5x more power than traditional centers
Cooling systems: Advanced liquid cooling drives demand for CSE' s solutions
Edge computing: 5G rollouts create demand for micro data centers

Electrification Megatrend

Global market: US$209 billion by 2034 (9% CAGR)
EV infrastructure: Growing demand for charging stations
Grid modernization: Smart grid investments across developed markets

Competitive Advantages - Sustainable Moats

Technical Expertise: 35+ years of engineering excellence in mission-critical infrastructure
Customer Stickiness: 90% repeat customers with 30+ year relationships
Geographic Scale: 15 countries, 61 offices providing local presence with global reach
End-to-End Solutions: From concept design to ongoing maintenance
Regulatory Compliance: Deep expertise in safety-critical environments

Valuation Analysis - Significant Upside Potential

Current Valuation Metrics (Based on S$0.66 share price)

P/E Ratio: 10.6x (FY2024 basis) - substantial discount to growth prospects
P/B Ratio: 1.2x - reasonable for asset-light business model
EV/EBITDA: ~9.5x - attractive for quality industrial business
Dividend Yield: 3.5% with progressive policy

Sum-of-Parts Valuation

Electrification: S$380-420 million (12-13x EBITDA)
Communications: S$180-200 million (16-18x EBITDA, reflecting growth)
Automation: S$70-80 million (20-23x EBITDA, turnaround story)
Net Debt: (S$91 million)

Fair Value Range: S$0.85 - S$0.95 per share (29-44% upside)

DCF Analysis

Revenue CAGR: 8-10% (2025-2027) driven by data center expansion
EBITDA margins: Expanding to 10-11% through operational leverage
WACC: 8.5% reflecting Singapore base and stable cash flows
Terminal growth: 3% conservative assumption

DCF Fair Value: S$0.90 per share

Investment Strategy Recommendations

For Institutional Investors

BUY - Target Allocation 2-4% of Asian/Singapore Equity Portfolio

Investment Rationale:

Pure-play exposure to AI infrastructure and electrification megatrends
Defensive growth characteristics with recurring revenue base
Strong management with proven acquisition integration track record
ESG compliant investment in sustainable infrastructure

Entry Strategy:

Primary accumulation: S$0.60-0.70 range
Core position sizing: 2-4% allocation with 24-36 month holding period
Catalyst-driven additions: Post-quarterly results or major contract wins

For Retail Investors

STRONG BUY - Price Target S$0.90

Investment Approach:

Growth at reasonable price (GARP) strategy - quality business at discount valuation
Thematic exposure to AI infrastructure without speculative risk
Dividend income component with 3.5% yield plus growth potential
Dollar-cost averaging: Build position over 3-6 months

Portfolio Allocation:

Growth investors: 4-6% allocation
Income investors: 3-4% allocation for dividend growth
Thematic investors: 5-7% as pure-play on electrification trend

Trading Action Plan & Price Targets

IMMEDIATE ACTION (Next 2-4 Weeks)

Current price S$0.66 represents attractive entry point
Accumulation zone: S$0.60-0.70
Stop-loss: S$0.55 (17% downside protection)

KEY MONITORING POINTS

Q3 2025 results (November) - order intake trends and project execution
Major contract announcements - particularly in data center segment
Acquisition pipeline - geographic expansion or capability building
Singapore data center policy - government capacity allocation decisions

PRICE TARGETS & CATALYSTS

Near-term (6-12 months): S$0.75-0.80 on earnings momentum
Medium-term (12-24 months): S$0.85-0.95 on structural growth acceleration
Long-term upside: S$1.00+ if data center boom exceeds expectations

KEY CATALYSTS

Data center contract wins - each major win could add 5-10% to share price
Margin expansion - demonstration of operational leverage
Dividend increase - potential to 4%+ yield attracting income investors
Strategic acquisition - bolt-on capabilities or geographic expansion

Risk Assessment & Mitigation

Key Risks (Manageable)

Economic slowdown affecting capex spending
Project execution delays or cost overruns
Competition from larger global players
Working capital intensity during growth phases

Risk Mitigation Factors

Diversified end markets across geography and sectors
Sticky customer relationships with high switching costs
Experienced management with 35+ years track record
Strong balance sheet with moderate gearing of 0.36x

Conclusion & Final Recommendation

CSE Global represents a rare combination of defensive characteristics and growth potential in the rapidly expanding data infrastructure sector. The company is strategically positioned at the intersection of multiple powerful megatrends - AI infrastructure, electrification, and data center expansion - while trading at a significant discount to its growth prospects.

The investment thesis is compelling:

Proven business model with 90% customer retention
Structural growth drivers in data center and electrification markets
Strong competitive position with technical expertise and geographic reach
Attractive valuation at 10.6x P/E with 29-44% upside potential
Progressive dividend policy providing income component

Both institutional and retail investors should consider CSE Global as a core holding to capture the AI infrastructure boom while benefiting from the company' s defensive characteristics and strong operational track record. The current price offers an excellent risk-adjusted entry point for a multi-year growth story.

FINAL RATING: STRONG BUY with S$0.90 price target THIS IS AS PER PERPLEXITY AI PRO BUT DYODD

Joelton ( Date: 14-Aug-2025 11:21) Posted:

CSE Global H1 earnings up 8.5% to S$16.3 million, boosted by growth of communications business

However, its order book for H1 fell by 17.1 per cent to S$573.8 million compared to a year ago.

[SINGAPORE] Technology solutions provider CSE Global : 544 -1.45% reported a profit of S$16.3 million for the first half of FY2025, up 8.5 per cent from the corresponding period in 2024.

Revenue for H1 was up 2.8 per cent to S$440.9 million, from S$428.9 million, led by the growth of its communication business segment in the Americas region.

The communication business segment grew 12.7 per cent to S$128 million in H1, from S$113.6 million a year ago.

However, its other two business segments saw a slight drop in revenue.

Revenue for its electrification business fell by 0.9 per cent to S$214.8 million, mostly due to the weakening of the US dollar.

Revenue for its automation business fell 0.5 per cent to S$98.1 million due to plant and equipment and technical know-how intangibles being written off amounting to S$5.1 million in H1.

In line with the overall higher revenue, the group&rsquo s gross profit increased to S$123 million, up 3.8 per cent from S$118.4 million.

However, its order book for H1 fell by 17.1 per cent to S$573.8 million.

Operating expenses for H1 rose by 6.2 per cent or S$5.9 million to S$101.4 million. This increase was mainly due to higher personnel costs of S$2.7 million, higher building and equipment expenses of S$2.1 million and increase in depreciation expenses of S$1 million.

Interest expenses were 11 per cent lower year-on-year, decreasing from S$4.6 million in H1 FY2024 to S$4.1 million in H1 FY2025.

Lim Boon Kheng, the chief executive officer of CSE Global, said that the company will benefit from the growing data centre industry, which will fuel strong demand for its electrification and communications solutions.

&ldquo With the recent acquisition of Chicago Communications, we have established a presence in four states for our communications business in the US, supporting our regional expansion strategy. In the coming months, we will further expand our capacity for the electrification and communications business,&rdquo he added.

CSE Global&rsquo s board of directors has recommended an interim dividend of S$0.0114 per share, lower than S$0.0125 from a year ago. The dividend will be paid out on Sep 26.

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Singapore construction demand projected at S$47-53 billion in 2025(error)

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I have never seen such a well written assessment by Perplexity AI Pro to my question : " Help me do a thorough assessment of Wee Hur(E3B) results and other announcement on 14 Aug 2025 and advise me like an expert investment adviser to Institutional and Retail Investors on the impact to respective share holdings and the diligent price action to sell or hold or buy?" Just for sharing as follows:Financial Performance Analysis Headline Results - Mixed but Fundamentally Strong Wee Hur' s 1H 2025 results reflect a business in transition, with revenue surging 43% to S$156 million driven by property development progress and one-off fund management fees. However, net profit attributable to equity holders declined 42% to S$38.7 million, primarily due to the absence of S$59.9 million in joint venture contributions following the strategic disposal of Fund I. The critical metric is adjusted net profit, which surged 164% to S$61.7 million, indicating robust underlying operational performance across core segments. Strong Financial Position Cash position strengthened to S$277 million (vs S$102 million in 1H 2024 Gearing ratio reduced to 13% - among the lowest in the sector NAV per share of S$0.67 with current trading at S$0.68 representing minimal premium Segment-by-Segment Assessment 1. Workers' Dormitory Business - The Crown Jewel Current Performance: 93% occupancy at Tuas View 15,744 beds) Game Changer: Pioneer Lodge adding 10,500 beds by end-2025 66% capacity increase) Market Dynamics: Structural shortage with new dormitory standards reducing sector supply Revenue Outlook: Projected 55% growth in FY26 Investment Thesis: This segment benefits from a perfect storm of limited supply, regulatory tightening, and sustained construction activity. The Pioneer Lodge expansion positions Wee Hur as a dominant player in a supply-constrained market. 2. Construction Business - Record Momentum Order book reaches record S$629 million (vs S$263 million in Dec 2024 Two major HDB BTO projects worth S$439.4 million secured in May 2025 Revenue visibility extended through FY29 Singapore construction demand projected at S$4753 billion in 2025 3. Property Development - Executing Well Bartley Vue: 100% sold with progressive revenue recognition driving 158% segment growth Mega@Woodlands: 99% sold 517 units) Australia expansion: 358-lot residential project approved in Queensland 4. Australian PBSA Strategic Reset Successfully monetized Fund I portfolio for A$1.6 billion Retained 13% stake in restructured trust managed by Greystar Positive catalyst: Australia raised 2026 international student cap by 9% to 295,000 Y Suites Margaret achieving 76% occupancy despite policy uncertainty Key Investment Catalysts & Timeline Near-term Catalysts Next 12 months) Pioneer Lodge full operations by end-2025 - transformational capacity expansion Construction project execution - S$629 million order book providing revenue visibility Tuas View lease extension decision (expires November 2026 - major value catalyst Australia student cap increase benefiting PBSA operations from 2026 Medium-term Growth Drivers 23 years) Fund III establishment for Adelaide PBSA development 708 beds) Queensland residential development execution Market share gains in workers' dormitory amid sector consolidation Dividend growth supported by strong cash generation Risk Assessment & Mitigation Key Risks Tuas View lease extension uncertainty - expires November 2026 Construction margin pressure from labor and material cost inflation Currency exposure to AUD through Australian operations Regulatory changes affecting dormitory or PBSA operations Risk Mitigation Factors Diversified revenue base across multiple segments and geographies Strong government relationships and regulatory compliance track record Natural hedging through AUD-denominated assets and liabilities Experienced management team with proven execution capability Valuation Analysis & Price Target Current Valuation Metrics P/E Ratio: 11.6x FY2024 earnings) P/B Ratio: 0.6x (significant discount to book value) Market Cap: S$625 million Enterprise Value: S$348 million (after cash) Sum-of-Parts Valuation Workers' Dormitory: S$450500 million DCF, 10% discount rate) Construction: S$315 million 0.5x order book) Property Development: S$80100 million 0.6x P/B Fund Management: S$50 million 12x P/E Net Cash: S$150 million Fair Value Range: S$0.75 S$0.85 per share Investment Strategy Recommendations For Institutional Investors STRATEGIC BUY Target Allocation 13% of Singapore Equity Portfolio Rationale: Structural growth story in workers' accommodation with regulatory moats Strong cash generation and balance sheet flexibility ESG-compliant investment in essential worker infrastructure Diversified revenue streams providing portfolio resilience Entry Strategy: Primary position: S$0.650.70 range Opportunistic additions: Below S$0.60 on market weakness Position sizing: 13% allocation with 1824 month investment horizon For Retail Investors ACCUMULATE ON WEAKNESS Price Target S$0.80 Investment Approach: Core holding strategy: Build position over 612 months Dollar-cost averaging: Monthly purchases of S$0.650.70 Catalyst-driven additions: Increase allocation on positive news flow Dividend reinvestment: Utilize interim dividend of S$0.005 per share Portfolio Allocation: Conservative investors: 23% allocation Growth-oriented investors: 35% allocation Hold period: 23 years to capture full cycle benefits Trading Action Plan IMMEDIATE ACTION Next 12 Weeks) Current price S$0.68 offers reasonable entry point Buy on any dip below S$0.65 Set stop-loss at S$0.60 12% downside protection) KEY MONITORING POINTS Pioneer Lodge operational updates - capacity ramp timeline Tuas View lease extension negotiations - critical value catalyst Construction order book additions - sustainability of growth Australian student policy developments - PBSA segment impact PROFITTAKING LEVELS First target: S$0.750.78 1015% gain) Second target: S$0.800.85 1825% gain) Long-term hold: Above S$0.85 for dividend yield play Conclusion Wee Hur Holdings represents a rare combination of defensive income generation and structural growth in Singapore' s built environment sector. The successful disposal of Fund I has strengthened the balance sheet while retaining upside exposure to Australian PBSA recovery. With Pioneer Lodge set to transform the workers' dormitory business and a record construction order book providing revenue visibility, the company is well-positioned for multi-year outperformance. The risk-reward profile favors accumulation at current levels, with multiple catalysts providing upside optionality while the strong balance sheet limits downside risk. Both institutional and retail investors should consider Wee Hur as a core holding in Singapore equities, benefiting from the country' s infrastructure development and housing needs for migrant workers.

superstartup ( Date: 14-Aug-2025 23:27) Posted:

The PR stated that the Adjusted Net Profit also excludes " share of profit/(loss) from associates and joint ventures" . This is to recognise the partial sale of the Australia Biz.
But then why company did not exclude the one-off performance and disposal fee of Fund I to Greystar, which is the same partial sale of Australia Biz?
" Revenue increased to S$40.3 million from S$2.3 million, mainly due to a one-off performance and disposal fee from the disposal of Fund I to Greystar."
And if we less off this one-off perfrmance and disposal fee, the EPS (from continued operations) will be much lower than stated.

( I stand to be corrected. )

x 0

The statements about Seatrium align well with publicly available information and its strategic direction:

🌊 1. Alignment with Future Energy Fund (Singapore)

The Future Energy Fund was expanded to S$10  billion in 2024 to support renewable energy, low-carbon infrastructure, R& D, and decarbonization efforts reuters.com+15seatrium.com+15sg.finance.yahoo.com+15.
Seatrium has already moved into offshore renewables and energy storage, notably completing Southeast Asia&rsquo s first floating energy storage system in Singapore alongside EMA reuters.com.
Their expertise in offshore wind platforms, carbon capture/use/storage, and green hydrogen aligns closely with the Fund&rsquo s goals of accelerating sustainable energy adoption.

✅ Conclusion: Seatrium is well-positioned to tap into the Fund&rsquo s support, thanks to its renewable energy credentials and strategic alignment.

⚓ 2. Brownsville Shipyard & WTIV &ldquo Charybdis&rdquo

The AmFELS shipyard in Brownsville, Texas, is owned by Seatrium and specializes in offshore and marine platforms, Jones Act&ndash compliant vessels 4coffshore.com+5brazilenergyinsight.com+5brazilenergyinsight.com+5.
Seatrium is building the &ldquo Charybdis&rdquo , the U.S.' s first Jones Act&ndash compliant Wind Turbine Installation Vessel for Dominion Energy&rsquo s Coastal Virginia Offshore Wind project&mdash fully U.S.&ndash built using domestic steel sg.finance.yahoo.com+11reuters.com+11gcaptain.com+11.
The vessel is now undergoing sea trials and reportedly ~96% complete gcaptain.com+2brazilenergyinsight.com+2workboat.com+2.

✅ Conclusion: The assertion that Seatrium&rsquo s Texas yard is constructing Charybdis is accurate and well-supported.

🔍 Comprehensive Setup & Strategic Fit

Claim	Validation
Floating energy storage	Built 7.5  MWh floating ESS in Singapore sg.finance.yahoo.com+3reuters.com+3reuters.com+3
Offshore renewables & carbon capture	Business segment clearly includes these capabilities
Brownsville shipyard with 1,800 workers	While Reuters didn&rsquo t state workforce numbers, yard operations and vessel build are verified
Jones Act WTIV Charybdis	Multiple sources confirm build, launch, trials, and design specs

🧭 Final Commentary

Strategic growth: Seatrium&rsquo s heavy investments in renewables, carbon capture, ESS, and offshore wind align it squarely with Singapore&rsquo s energy transition ambitions. They are prime candidates for funding and strategic partnerships via the Future Energy Fund.
Global expansion: The Texas shipyard and Charybdis project highlight Seatrium&rsquo s expanding footprint in the U.S. offshore wind market, fulfilling both strategic and policy-driven requirements (Jones Act).
Well-rounded positioning: Their capabilities span the energy spectrum&mdash from traditional O& G platforms to cutting-edge cleaner-energy infrastructure, reinforcing their relevance to both government funds and international energy transition trends. DYODD

aragosta ( Date: 07-Jul-2025 14:17) Posted:

Don' t juz see the present situation...Look at the future prospects and opportunities and future developments of Seatrium, the sky is the limit, the price is a potential multibagger....
But don' t believe in the gangsters words, their specialty is to make you feel unbelievable.....

SEATRIUM

Seatrium is also positioned to potentially benefit from Singapore' s Future Energy Fund, particularly through its expertise in offshore and marine solutions for renewable energy projects. The fund aims to support Singapore' s energy transition, and Seatrium' s capabilities in areas like offshore wind, carbon capture, and floating LNG align with these goals.

Here' s why Seatrium is likely to benefit:

Alignment with Fund' s Goals:
The Future Energy Fund aims to accelerate the adoption of sustainable energy solutions, and Seatrium' s investments in renewables and green hydrogen projects position them to capitalize on these opportunities.
Renewable Energy Focus:
The Future Energy Fund is designed to support the development of renewable energy infrastructure, including offshore wind projects. Seatrium has a growing order book in the renewable energy space, including work on high-voltage direct current offshore platforms for offshore wind projects.
Energy Transition Expertise:
Seatrium' s experience in traditional offshore projects, like FPSOs and LNG infrastructure, positions them to play a role in the transition to cleaner energy sources.They are also involved in carbon capture, usage, and storage, and hydrogen-related projects, which are key areas for the energy transition.
Government Support:
The doubling of the Future Energy Fund to S$10 billion demonstrates strong government commitment to the energy transition, which can drive opportunities for companies like Seatrium.
Repairs and Upgrades:
Seatrium' s repairs and upgrades division can also benefit from the increased activity in the energy sector as older vessels and infrastructure are adapted for new energy sources and technologies.
Potential for Increased Investment:
The Future Energy Fund may lead to increased investment in Seatrium' s renewable energy projects, boosting their growth and profitability.
In addition to the Future Energy Fund, Seatrium is also well-positioned to benefit from broader trends in the energy sector, such as the need for energy security and the growing demand for cleaner energy sources. The company' s strategy includes focusing on both oil and gas and renewables solutions, as well as maritime upgrades, to capitalize on these opportunities.

=========================
Eyeing Arctic dominance, Trump bill earmarks $8.6 billion for US Coast Guard icebreakers SEAtrium gets a mention
https://www.reuters.com/world/us/eyeing-arctic-dominance-trump-bill-earmarks-86-billion-us-coast-guard-2025-07-03/

Overview
Seatrium (formerly Keppel AmFELS) has a shipyard in Brownsville, Texas, according to multiple sources.This shipyard is located at the Port of Brownsville, which is the primary shipbuilding port in Texas. It is a major player in the construction and repair of offshore and marine platforms, and is also involved in Jones Act shipbuilding.

The shipyard is known for building the first U.S.-built wind turbine installation vessel (WTIV), named Charybdis, for Dominion Energy, which is being constructed there. This vessel is built to meet the requirements of the Jones Act, meaning it can operate in U.S. waters. The shipyard employs 1,800 workers and has a strong track record in building, refurbishing, converting, and repairing various types of offshore and marine vessels and platforms.
https://www.portofbrownsville.com/the-cycle-of-life/

x 0

Giant floater prepares to depart Singapore, marking key milestone in $2.3 billion Brazilian project
Petrobras chief executive, Magda Chambriard, announces sailaway ceremony for P-78 FPSO at Seatrium' s Singapore facility
The P-78 floating production, storage and offloading vessel is preparing to depart Singapore' s Seatrium yard for Brazil, where it will be deployed on Petrobras? massive Buzios pre-salt field." Unquote
A Seatrium spokesperson on Wednesday told Upstream that the FPSO is still at its yard in the Lion City, where it will take on bunker and stores and be prepared for its voyage, " which will take a week or two" .
Petrobras chief executive, Magda Chambriard, had announced the sailaway ceremony for the $2.3 billion floater via social media LinkedIn on Monday.
The departure of the P-78 FPSO from Seatrium' s Singapore yard for Petrobras&rsquo $2.3 billion Buzios project is a highly significant operational milestone for Seatrium, but its impact on the share price is likely to be positive but largely anticipated (partially priced in) by the market.
Significance of the P-78 FPSO Milestone

Revenue Recognition: The delivery and sailaway of the P-78 FPSO marks the achievement of a major project milestone, allowing Seatrium to recognize a substantial portion of project revenue and associated profit in its 2H25 financials ^[1]^[2].
Margin Expansion: Management and analysts expect gross margins for the P-78 to be around 9&ndash 10%, higher than previous Petrobras projects, contributing to a strong rebound in overall group margins in 2025 ^[1]^[2].
Order Book Strength: The P-78 is one of several large FPSOs Seatrium is building for Petrobras, underpinning a robust order book (S$16.2 billion as of mid-2025) and providing multi-year revenue visibility ^[3]^[4].
Reputation and Future Wins: Successful delivery of such a complex, high-value FPSO strengthens Seatrium&rsquo s reputation with Petrobras and globally, positioning it well for future FPSO contracts as Petrobras ramps up Buzios field development and as more tenders are expected in the next 12&ndash 24 months ^[4]^[5].

Impact on Share Price: Priced In or Further Upside?

Market Anticipation: The sailaway of the P-78 has been widely tracked by analysts and investors since the contract was awarded in 2021. The milestone was expected in 2H25, and the market has partially priced in the successful delivery and its financial impact ^[1]^[2].
Earnings Preview: Analysts are forecasting strong 1H25 results for Seatrium, with revenue up 18% year-on-year and net profit up 33% year-on-year, driven in large part by Petrobras FPSO deliveries, including the P-78 ^[1]^[2].
Valuation Upside: Despite recent gains, Seatrium&rsquo s share price (S$2.03 at last close) still trades at a discount to analyst target prices (CGS International: S$2.80, UOB Kay Hian: S$2.31), suggesting room for further upside if execution remains strong and no cost overruns emerge ^[1]^[5].
Catalyst for Further Rerating: The actual financial delivery (revenue/profit recognition) and confirmation of margin improvement in upcoming results could serve as a catalyst for renewed buying interest, especially if accompanied by new contract wins or positive guidance on future FPSO projects ^[1]^[2]^[5].

Potential Risks

Execution Risk: Any unforeseen issues in final commissioning, cost overruns, or operational delays could temper the positive impact.
Sector Volatility: Broader market or oil sector volatility could still affect the share price regardless of company-specific achievements.

Summary Table

Factor	Impact on Seatrium Share Price
P-78 FPSO delivery milestone	Positive (revenue/profit recognition)
Margin improvement	Positive (supports earnings rebound)
Order book visibility	Positive (multi-year revenue support)
Market anticipation	Partially priced in, but further upside possible
Analyst targets	Still above current price, room for rerating
Future contract pipeline	Positive if new wins materialize

In conclusion:
The P-78 FPSO sailaway is a key operational and financial milestone for Seatrium. While much of the news is already anticipated by the market, the actual revenue and profit recognition, along with visible margin improvement, could provide further upside to the share price&mdash especially if accompanied by new contract wins or bullish management guidance. The event confirms Seatrium&rsquo s execution capabilities and strengthens its position for future mega-projects in Brazil and beyond ^[1]^[3]^[4]^[2]^[5].
⁂

War3craft2003 ( Date: 02-Jul-2025 21:48) Posted:

https://www.upstreamonline.com/rigs-and-vessels/giant-floater-prepares-to-depart-singapore-marking-key-milestone-in-2-3-billion-brazilian-project/2-1-1840267

Giant floater prepares to depart Singapore, marking key milestone in $2.3 billion Brazilian project
Petrobras chief executive, Magda Chambriard, announces sailaway ceremony for P-78 FPSO at Seatrium's Singapore facility

The P-78 floating production, storage and offloading vessel is preparing to depart Singapore's Seatrium yard for Brazil, where it will be deployed on Petrobras? massive Buzios pre-salt field.

A Seatrium spokesperson on Wednesday told Upstream that the FPSO is still at its yard in the Lion City, where it will take on bunker and stores and be prepared for its voyage, "which will take a week or two".

Petrobras chief executive, Magda Chambriard, had announced the sailaway ceremony for the $2.3 billion floater via social media LinkedIn on Monday.

x 1

Wee Hur stock closed at 47.5c is there possibility of it going private and why?
Based on recent developments, there is a reasonable possibility that Wee Hur Holdings could consider going private in the future, but there is no official announcement or concrete evidence yet. Here&rsquo s an expert analysis of the factors that support or limit this scenario:
Why a Privatisation Scenario Is Plausible
1. High Insider and Private Company Ownership

Ownership Structure: The top four shareholders collectively control about 53% of Wee Hur, with the largest private company (GSC Pte Ltd.) holding 38% and key insiders (including the CEO and a board member) among the largest shareholders ^[1].
Implication: High concentration of ownership gives insiders significant influence and makes a privatisation offer easier to coordinate and execute.

2. Strong Cash Position After Asset Sale

Major Asset Disposal: Wee Hur recently sold its Australian student accommodation assets for A$1.6 billion, generating S$320 million in cash and retaining a 13% stake worth A$200 million ^[2]^[3]^[4]^[5].
Debt Cleared: The sale enabled Wee Hur to clear related debt, further strengthening its balance sheet ^[2].
Implication: The company now has ample liquidity, making it financially feasible to launch a privatisation bid or fund a share buyback.

3. Trading Below Book Value

Valuation: Wee Hur is trading at a significant discount to its book value (~26% below), which often attracts privatisation interest as controlling shareholders may want to unlock value ^[5].
Implication: Management and major shareholders may see more value in taking the company private and restructuring or selling assets without public market scrutiny.

4. Limited Institutional and Public Float

Low Institutional Ownership: Less than 5% of shares are held by institutions, and retail investors hold only 35%^[1].
Implication: With a relatively small public float, a privatisation offer could be completed with less resistance and at a lower premium.

Why a Go-Private Move Is Not Guaranteed (Yet)
1. No Formal Offer or Announcement

Current Status: There has been no formal privatisation offer or official communication from Wee Hur&rsquo s board or controlling shareholders.
Implication: While conditions are ripe, any privatisation scenario remains speculative until a concrete offer is made.

2. Strategic Reinvestment Plans

Growth Outlook: Management has indicated plans to reallocate capital into new construction, engineering, and investment opportunities, including a new PBSA Fund III and expansion in core businesses ^[2]^[5]^[6].
13% Retained Stake: The company has kept a strategic 13% stake in the student accommodation portfolio, signaling ongoing interest in public market participation and growth ^[3]^[4]^[7]^[6].
Implication: The company may prefer to remain listed to access capital markets for future growth, at least in the near term.

3. Shareholder Value Initiatives

Special Dividends: The company recently paid out a special dividend (S$0.078/share, ~15% yield) to reward shareholders after the asset sale ^[5].
Implication: Management may continue to use dividends and capital returns as tools to enhance shareholder value, rather than privatise immediately.

Summary Table

Factor	Supports Privatisation	Limits/Delays Privatisation
High insider/private ownership	✔
Strong cash after asset sales	✔
Trading below book value	✔
Limited institutional/public float	✔
No formal offer/announcement		✔
Strategic expansion plans		✔
Recent special dividends		✔

Conclusion
Wee Hur Holdings has many characteristics that make a privatisation bid plausible: concentrated insider ownership, strong cash reserves, undervaluation, and a small public float. However, there is no formal move yet, and management appears focused on capital reinvestment and rewarding shareholders through dividends in the near term.
Investors should monitor for any official announcements or further insider share accumulation, as these could signal a shift toward a potential go-private transaction.
For now, the possibility is real but remains speculative ^[2]^[1]^[3]^[4]^[5].
⁂

moonsun ( Date: 30-Jun-2025 10:25) Posted:

Privisatise possibly?

x 0

Just to elaborate on this :" Meanwhile, the group& rsquo s record orderbook of $29.8 billion offers around 2.6 years of forward revenue coverage, notes the analyst.
Importantly, the current orderbook excludes the US$1.73 billion New Jersey E-ZPass services contract, which has yet to be added, pending the resolution of a competitor& rsquo s appeal. Quote " The US$1.73 billion New Jersey E-ZPass contract could significantly boost ST Engineering&rsquo s revenue for several reasons:
1. Large, Multi-Year Revenue Stream

Contract Value: At US$1.73 billion (over S$2.3 billion), this is one of the largest single contracts ever secured by ST Engineering&rsquo s subsidiary, TransCore ^[1]^[2].
Duration: The contract spans 10&ndash 12 years, covering the design, installation, operation, and maintenance of tolling systems for some of the busiest toll roads in the US ^[3]^[2].
Annual Revenue Impact: Analyst estimates and management commentary suggest revenue from these projects could exceed S$200 million annually, more than doubling to over S$400 million per year by 2028 as the project ramps up ^[4].

2. Visibility and Order Book Enhancement

Order Book Addition: Once the contract is officially added (pending resolution of a competitor&rsquo s appeal), it will be included in ST Engineering&rsquo s order book, which already stands at S$29.8 billion ^[5].
Forward Revenue Coverage: The addition of this contract will further extend the company&rsquo s forward revenue visibility, supporting 2.6 years or more of projected revenue ^[5].

3. Higher Margin, Value-Added Solutions

Integrated Technology: The contract involves advanced tolling technology (automatic vehicle identification, video capture, digital audit systems), positioning TransCore as a Tier-1 prime contractor and allowing for higher-margin work ^[3]^[2].
Operational Leverage: As ST Engineering moves up the value chain with such turnkey projects, it can command better margins and set contractual terms ^[4].

4. US Market and Strategic Positioning

Reputation and Market Share: Winning a high-profile, statewide contract in New Jersey cements TransCore&rsquo s reputation in the US tolling market, potentially leading to more large-scale contracts in North America ^[1].
Hiring and Local Investment: The contract includes commitments to hire hundreds of employees and open new customer service centers, deepening ST Engineering&rsquo s US footprint ^[1].

5. Catalysts for Growth and Earnings

Not Yet Priced In: The contract is not yet included in current revenue or order book figures, so its confirmation and ramp-up would be a new catalyst for upward revisions in analyst forecasts and potentially share price ^[5]^[4].
Potential for Upside: If the contract is executed efficiently, it could drive higher-than-expected revenue and profit growth, narrowing the gap between conservative analyst projections and management&rsquo s more optimistic guidance ^[5].

Summary Table: Why the US$1.73b NJ Contract Matters

Reason	Impact
Large contract value	Significant revenue stream over a decade
Multi-year duration	Recurring, predictable income
Advanced technology	Higher margins, operational leverage
US market credibility	Opens doors for future contracts
Not yet in order book	Fresh catalyst for growth and share price

In conclusion:
The US$1.73 billion New Jersey contract, once added to ST Engineering&rsquo s order book, will provide a substantial, recurring revenue stream, enhance earnings visibility, support margin expansion, and act as a catalyst for future growth in the US market&mdash all of which can significantly boost the company&rsquo s revenue and potentially its share price ^[3]^[4]^[1]^[5]^[2]." Unquote DYODD
⁂

sfw2124 ( Date: 29-Jun-2025 16:47) Posted:

RHB Bank Singapore (RHB) analyst Shekhar Jaiswal has kept his & ldquo buy& rdquo call on Singapore Technologies Engineering (ST Engineering) at a lowered target price (TP) of $8.65 from $8.90 previously.
On the group& rsquo s divestment of construction equipment subsidiary LeeBoy for US$290 million ($369 million), Jaiswal notes that the deal has a small earnings impact, and proceeds of US$246 million will be used to reduce debt.
LeeBoy, previously under ST Engineering& rsquo s defence and public security (DPS) segment, had a FY2024 revenue of $326.3 million, earrings before interests and taxes (ebit) of $37.2 million, a profit before tax (PBT) of $33.8 million and a book value of $200.9 million.
Jaiswal writes: & ldquo The transaction, part of ST Engineering& rsquo s ongoing portfolio rationalisation and marking its exit from the construction equipment business, is expected to close in 4QFY2025.& rdquo
The deal will deliver an after-tax gain of $100 million and raise FY2024 profit by 10.5% on a pro-forma basis.
& ldquo We maintain our FY2025 recurring profit estimate as the gains would be one-off. We trim FY2026- FY2027 earnings by 2% per annum (p.a.), reflecting the loss of earnings from LeeBoy, partially offset by the reduction in interest expenses,& rdquo writes Jaiswal.
Meanwhile, the group& rsquo s record orderbook of $29.8 billion offers around 2.6 years of forward revenue coverage, notes the analyst.
Importantly, the current orderbook excludes the US$1.73 billion New Jersey E-ZPass services contract, which has yet to be added, pending the resolution of a competitor& rsquo s appeal.
With this, Jaiswal& rsquo s FY2029 forecasts are more conservative than ST Engineering& rsquo s guidance of an 8.6% revenue compound annual growth rate (CAGR) and up to a 13.6% profit CAGR for the FY2024 to FY2029.
However, three catalysts could narrow this gap, he notes.
These include stronger-than-expected performance in the group& rsquo s international defence segment, the transition of ST Engineering& rsquo s aviation asset management business to a fund structure and lastly, potential merger and acquisitions (M& A).
On the other hand, downside risks include a slower revival in the commercial aerospace (CA) sector, lower margins from higher costs caused by supply chain issues, delays in the delivery of orders and lower-than-expected contributions from acquisitions." Unquote
The RHB analyst report on ST Engineering (STE) is well-supported by recent developments and aligns with consensus views. Here&rsquo s a detailed validation and commentary:
Validation of Key Points
1. LeeBoy Divestment

Deal Details: STE is selling its US-based construction equipment subsidiary, LeeBoy, for US$290 million (S$369 million). Net proceeds of about US$246 million will be used to reduce debt, saving approximately S$9 million in annual interest expense ^[1]^[2]^[3].
Financial Impact: LeeBoy contributed S$33.8 million in net profit and S$326.3 million in revenue in FY2024 ^[1]^[2]. The disposal will result in a one-off after-tax gain of about S$100 million, raising FY2024 profit by 10.5% on a pro-forma basis ^[1]^[2]^[4].
Strategic Rationale: This is the last of STE&rsquo s construction equipment businesses, marking a clean exit from non-core operations and aligning with its ongoing portfolio rationalisation strategy ^[5]^[2]^[3].

2. Earnings and Forecasts

Earnings Adjustment: The analyst notes that recurring profit estimates for FY2025 are unchanged, as the gain is one-off. FY2026&ndash 2027 earnings are trimmed by 2% p.a. to reflect the loss of LeeBoy&rsquo s recurring earnings, partially offset by lower interest expense ^[6]^[4].
Orderbook Strength: STE&rsquo s orderbook stands at S$29.8 billion, covering about 2.6 years of forward revenue. This excludes the US$1.73 billion New Jersey E-ZPass contract, which could be a future catalyst ^[6]^[7].

3. Growth Catalysts and Risks

Catalysts: Upside could come from stronger international defence performance, the aviation asset management business moving to a fund structure, and potential M& A activity.
Risks: Downside risks include a slower recovery in commercial aerospace, supply chain cost pressures, order delivery delays, and underperformance from acquisitions.

4. Target Price and Valuation

Target Price: The target price is lowered slightly to S$8.65 (from S$8.90), reflecting the modest earnings impact from the divestment and a conservative stance on growth forecasts.
Valuation: The stock closed at S$7.83 after the announcement, suggesting about 10% upside to the revised target price ^[1]^[2]^[6].

Commentary
Positive Takeaways

Portfolio Focus: The divestment of LeeBoy is strategically sound, allowing STE to focus on higher-growth and higher-margin core segments (defence, aerospace, urban solutions)^[5]^[4].
Balance Sheet Strengthening: Proceeds will reduce debt, improve financial flexibility, and help manage interest costs in a higher-rate environment ^[1]^[3].
Orderbook Visibility: The robust orderbook provides multi-year revenue and earnings visibility, supporting dividend sustainability and future growth.

Balanced Outlook

One-Off Gain: The profit boost from the sale is non-recurring, so long-term earnings growth will depend on core business execution and new contract wins.
Growth Moderation: The analyst&rsquo s more conservative forecasts versus management guidance are prudent, given macro uncertainties and the time needed to realise new growth drivers.
Valuation: At current levels, STE remains attractive for long-term investors seeking stability, a progressive dividend, and exposure to defence and infrastructure themes.

Risks to Watch

Execution: Realising upside from new defence contracts, asset management, and M& A will require strong execution and integration.
Sector Cyclicality: Commercial aerospace recovery and supply chain normalization are not guaranteed and could impact margins and growth.

Conclusion
The analyst&rsquo s &ldquo Buy&rdquo call with a slightly lowered target price is justified by STE&rsquo s strategic divestment, strong orderbook, and focused growth strategy. While the LeeBoy sale has a limited recurring earnings impact, it strengthens STE&rsquo s balance sheet and positions the group for higher-quality growth. The outlook remains positive, but investors should watch for execution risks and sector headwinds.^[1]^[5]^[2]^[6]^[3]^[4]
⁂

Joelton ( Date: 28-Jun-2025 13:20) Posted:

RHB maintains &lsquo buy&rsquo call on ST Engineering at lowered TP of $8.65

RHB Bank Singapore (RHB) analyst Shekhar Jaiswal has kept his &ldquo buy&rdquo call on Singapore Technologies Engineering (ST Engineering) at a lowered target price (TP) of $8.65 from $8.90 previously.

On the group&rsquo s divestment of construction equipment subsidiary LeeBoy for US$290 million ($369 million), Jaiswal notes that the deal has a small earnings impact, and proceeds of US$246 million will be used to reduce debt.

LeeBoy, previously under ST Engineering&rsquo s defence and public security (DPS) segment, had a FY2024 revenue of $326.3 million, earrings before interests and taxes (ebit) of $37.2 million, a profit before tax (PBT) of $33.8 million and a book value of $200.9 million.

Jaiswal writes: &ldquo The transaction, part of ST Engineering&rsquo s ongoing portfolio rationalisation and marking its exit from the construction equipment business, is expected to close in 4QFY2025.&rdquo

The deal will deliver an after-tax gain of $100 million and raise FY2024 profit by 10.5% on a pro-forma basis.

&ldquo We maintain our FY2025 recurring profit estimate as the gains would be one-off. We trim FY2026- FY2027 earnings by 2% per annum (p.a.), reflecting the loss of earnings from LeeBoy, partially offset by the reduction in interest expenses,&rdquo writes Jaiswal.

Meanwhile, the group&rsquo s record orderbook of $29.8 billion offers around 2.6 years of forward revenue coverage, notes the analyst.

Importantly, the current orderbook excludes the US$1.73 billion New Jersey E-ZPass services contract, which has yet to be added, pending the resolution of a competitor&rsquo s appeal.

With this, Jaiswal&rsquo s FY2029 forecasts are more conservative than ST Engineering&rsquo s guidance of an 8.6% revenue compound annual growth rate (CAGR) and up to a 13.6% profit CAGR for the FY2024 to FY2029.

However, three catalysts could narrow this gap, he notes.

These include stronger-than-expected performance in the group&rsquo s international defence segment, the transition of ST Engineering&rsquo s aviation asset management business to a fund structure and lastly, potential merger and acquisitions (M& A).

On the other hand, downside risks include a slower revival in the commercial aerospace (CA) sector, lower margins from higher costs caused by supply chain issues, delays in the delivery of orders and lower-than-expected contributions from acquisitions.

x 0

RHB Bank Singapore (RHB) analyst Shekhar Jaiswal has kept his & ldquo buy& rdquo call on Singapore Technologies Engineering (ST Engineering) at a lowered target price (TP) of $8.65 from $8.90 previously.
On the group& rsquo s divestment of construction equipment subsidiary LeeBoy for US$290 million ($369 million), Jaiswal notes that the deal has a small earnings impact, and proceeds of US$246 million will be used to reduce debt.
LeeBoy, previously under ST Engineering& rsquo s defence and public security (DPS) segment, had a FY2024 revenue of $326.3 million, earrings before interests and taxes (ebit) of $37.2 million, a profit before tax (PBT) of $33.8 million and a book value of $200.9 million.
Jaiswal writes: & ldquo The transaction, part of ST Engineering& rsquo s ongoing portfolio rationalisation and marking its exit from the construction equipment business, is expected to close in 4QFY2025.& rdquo
The deal will deliver an after-tax gain of $100 million and raise FY2024 profit by 10.5% on a pro-forma basis.
& ldquo We maintain our FY2025 recurring profit estimate as the gains would be one-off. We trim FY2026- FY2027 earnings by 2% per annum (p.a.), reflecting the loss of earnings from LeeBoy, partially offset by the reduction in interest expenses,& rdquo writes Jaiswal.
Meanwhile, the group& rsquo s record orderbook of $29.8 billion offers around 2.6 years of forward revenue coverage, notes the analyst.
Importantly, the current orderbook excludes the US$1.73 billion New Jersey E-ZPass services contract, which has yet to be added, pending the resolution of a competitor& rsquo s appeal.
With this, Jaiswal& rsquo s FY2029 forecasts are more conservative than ST Engineering& rsquo s guidance of an 8.6% revenue compound annual growth rate (CAGR) and up to a 13.6% profit CAGR for the FY2024 to FY2029.
However, three catalysts could narrow this gap, he notes.
These include stronger-than-expected performance in the group& rsquo s international defence segment, the transition of ST Engineering& rsquo s aviation asset management business to a fund structure and lastly, potential merger and acquisitions (M& A).
On the other hand, downside risks include a slower revival in the commercial aerospace (CA) sector, lower margins from higher costs caused by supply chain issues, delays in the delivery of orders and lower-than-expected contributions from acquisitions." Unquote
The RHB analyst report on ST Engineering (STE) is well-supported by recent developments and aligns with consensus views. Here&rsquo s a detailed validation and commentary:
Validation of Key Points
1. LeeBoy Divestment

Deal Details: STE is selling its US-based construction equipment subsidiary, LeeBoy, for US$290 million (S$369 million). Net proceeds of about US$246 million will be used to reduce debt, saving approximately S$9 million in annual interest expense ^[1]^[2]^[3].
Financial Impact: LeeBoy contributed S$33.8 million in net profit and S$326.3 million in revenue in FY2024 ^[1]^[2]. The disposal will result in a one-off after-tax gain of about S$100 million, raising FY2024 profit by 10.5% on a pro-forma basis ^[1]^[2]^[4].
Strategic Rationale: This is the last of STE&rsquo s construction equipment businesses, marking a clean exit from non-core operations and aligning with its ongoing portfolio rationalisation strategy ^[5]^[2]^[3].