Its urban solutions business wins contracts to provide passenger information systems for Singapore&rsquo s North-South and East-West MRT lines

 

ST ENGINEERING : S63 +0.21% on Thursday (Feb 6) announced that it secured S$4.3 billion in new contracts in the fourth quarter of 2024.

 

These comprise S$1.8 billion from the commercial aerospace segment, S$1.7 billion from the defence and public security segment, and S$700 million from the urban solutions and satcom segment.

 

The commercial aerospace segment clinched several new contracts across its maintenance, repair and overhaul (MRO), as well as its aerostructures and systems sub-units.

 

This reflects the group&rsquo s strong market position and continued demand for aerospace solutions, underpinned by strong aviation demand, said ST Engineering.

 

One of the new MRO contracts is a 15-year exclusive contract with Akasa Air, a low-cost airline based in India.

 

The other contracts include a six-year airframe heavy-maintenance contract to support a US-based airline&rsquo s Boeing 787 fleet, and an exclusive five-year MRO agreement with a European airline.

 

The aerostructures and systems sub-unit of the commercial aerospace segment continued to receive orders for nacelles and composite floor panels in support of aircraft original equipment manufacturers&rsquo production.

 

Separately, the defence and public security segment won new orders across its business lines.

 

For instance, the land systems business signed a strategic partnership contract with Kazakhstan Paramount Engineering to provide engineering and technical expertise for a new eight-by-eight amphibious multipurpose armoured vehicle. It will be based on ST Engineering&rsquo s proven Terrex eight-by-eight infantry fighting vehicle.

 

The contract, announced in December 2024, marked ST Engineering&rsquo s entry into a new market in Central Asia.

 

Meanwhile, the digital systems business scored a contract to develop a high-performance artificial intelligence (AI) cloud infrastructure, as well as AI-enabled command-and-control systems and training and simulation solutions.

 

The cyber sub-segment secured new contracts for its cyber solutions and advanced encryption products, as well as the provision of cloud-based managed security services for a customer in Asean.

 

The marine business won a shipbuilding contract to design and build a &ldquo walk-to-work&rdquo vessel for a leading oil and gas company, as well as various ship repair and maintenance contracts for both commercial and naval ships.

 

In urban solutions and satcom, business units secured contracts to provide smart metro solutions in Bangkok and Kaohsiung, as well as passenger information systems for the North-South and East-West MRT lines in Singapore.

 

Meanwhile, smart utilities and infrastructure contracts included a monitoring project for building structural health, and integrated smart security management solutions for customers in Singapore.

 

Satcom received ground infrastructure contracts for the aviation, government and enterprise segments in various regions.

 

ST Engineering does not expect the contracts to have a material impact on the group&rsquo s consolidated net tangible assets per share and earnings per share for the current financial year.

The chargers will mainly be in industrial areas to provide EV drivers with more options

 

TWO electric vehicle (EV) charging operators won contracts to deploy public EV charging points across Singapore under a tender by the Land Transport Authority&rsquo s (LTA) subsidiary EV-Electric Charging (EVe). 

 

EVe said on Friday (Jan 24) that it awarded contracts under its second tender to SP Mobility, the mobility arm of SP Group, and ST Engineering Urban Solutions. 

 

It added that this builds on the first tender launched in June 2024, when it awarded contracts to Volt Singapore and ComfortDelGro (CDG) Engie to deploy fast EV charging points around Singapore.

 

CDG Engie is a joint venture between land transport operator ComfortDelGro and French multinational utility company Engie.

 

Under the contracts, a minimum of 46 charging points will be deployed around Singapore &ndash with ST Engineering set to deliver no less than 22 charging points across 11 locations and SP Mobility with no less than 24 charging points across 9 locations. 

 

The deployment of charging points will be progressively rolled out in two phases over 2025 and 2026, with the first charging point site expected to be operational by end-2025. 

 

With EV adoption on the rise, the new charging points under this latest tender are set to be deployed primarily in industrial areas. 

 

This is to supplement Singapore&rsquo s EV charging network beyond residential and commercial premises to support the electrification of commercial vehicles, and provide drivers with more charging destination options, said EVe. 

 

It added that most of the charging points to be deployed under the contracts are fast charging points.

 

EVe chief executive officer Stephanie Tan said: &ldquo Placing fast chargers at industrial areas allows us to better support the diverse needs of EV drivers and in particular to support the electrification of commercial fleets.&rdquo  

 

ST Engineering Urban Solutions and SP Mobility are among eight EV charging operators selected by EVe to drive the next phase of charging point deployment, the LTA subsidiary said. 

 

It added that both charging operators have been carefully assessed against a &ldquo rigorous quality criteria&rdquo to ensure they have the capabilities required for successfully deploying public EV charging points. 

 

Singapore Technologies Engineering (ST Engineering) has secured a shipbuilding contract for the design and construction of a walk-to-work (W2W) vessel for a leading oil and gas company, marking its expansion into the market for specialised vessels supporting offshore operations. 

 

With a capacity to accommodate 106 people and a length of 97 metres, the W2W vessel is purpose-built to ensure the safe transfer of personnel and essential goods for offshore installations. It will feature an advanced motion-compensated gangway to ensure safe personnel transfers in varying sea conditions, and a 10-tonne crane with active heave compensation for more effective load handling in rough seas.

 

Expected to be completed by the 1HFY2027, the W2W vessel will not be ST Engineering&rsquo s first, with the group having delivered a wide range of vessels from patrol vessels for navies to superyachts for private clients, as well as specialised vessels for offshore wind as well as oil and gas operations.

 

Tan Leong Peng, president, marine, ST Engineering, says, &ldquo Building a W2W vessel demands specialised expertise in marine engineering, advanced systems integration and dynamic positioning- areas where we excel. Being selected after a rigorous evaluation process is a testament to our expertise, dedication to quality and compliance with global standards.&rdquo

It is due for completion by July 2030

 

THE urban solutions business of ST Engineering has bagged about S$180 million worth of contracts for the new 35.9-km mass rapid transit (MRT) Orange Line in Bangkok, Thailand.

 

On Wednesday (Dec 18), ST Engineering said that it will provide its latest communications system, Supervisory Control and Data Acquisition (Scada) system, and Agil Platform Screen Door (PSD) solution for the project.

 

Works under the contracts, which were awarded in September this year, have commenced and are due for completion by July 2030.

 

ST Engineering said that its communications system will connect various components and systems in trains and stations, hence facilitating efficient operations and predictive maintenance by using the latest networking technologies for timely data transmission.

 

The Scada system will support real-time monitoring and control of overall metro operations.

 

Both systems were highlighted by the group as &ldquo integral to the smooth operations of the Orange Line&rdquo .

 

ST Engineering&rsquo s urban solutions unit will also provide 500 sets of full-height PSDs, and more than 160 sets of half-height PSDs for the Orange Line&rsquo s 21 underground stations and seven elevated stations.

 

The PSDs, which serve as safety barriers between the station platforms and tracks, are expected to enhance commuter safety while reducing train delays due to unauthorised track intrusions or fallen objects on the tracks.

 

All three solutions will thus &ldquo enable reliable, efficient and safe metro operations and passenger service for more seamless journeys&rdquo , said ST Engineering.  

 

Chew Men Leong, president of urban solutions, ST Engineering, said: &ldquo These projects strengthen our longstanding role in advancing Bangkok&rsquo s metro infrastructure and highlight the strong trust that the industry has in our technical and engineering capabilities.&rdquo

 

&ldquo With an experienced team of experts in Bangkok since 2014, we are fully committed to supporting Bangkok&rsquo s rail expansion programmes,&rdquo he added.

It will provide engineering and technical support for the construction of the armoured vehicle

 

ST ENGINEERING&rsquo S international defence business has secured a strategic partnership with Kazakhstan Paramount Engineering (KPE) to set up production capabilities for a new military vehicle, the company said on Friday (Dec 6).

 

The 8x8 amphibious multi-purpose armoured vehicle will be manufactured at KPE&rsquo s production facility in Kazakhstan. Its design and production will be based on ST Engineering&rsquo s field-tested Terrex Infantry Fighting Vehicle, which can operate effectively in &ldquo open water conditions&rdquo . 

 

ST Engineering will provide engineering and technical support for the construction of the vehicle, which begins in 2025.

 

President of ST Engineering&rsquo s land systems business Lim Kok Ann said that the collaboration marks the company&rsquo s entry into the new market of Central Asia.

 

The partnership is part of ST Engineering&rsquo s international defence business&rsquo strategy to pursue growth through localisation, in-country operations support and licensing with industry partners.  

 

Lim said that it is a breakthrough for the company&rsquo s land systems business, being the &ldquo first significant international land platform contract&rdquo the business has secured in recent years.

 

Chairman of KPE&rsquo s supervisory board Aibek Baryssov said that the collaboration will combine ST Engineering&rsquo s capabilities with KPE&rsquo s experience in deep localisation, scientific research, and the operation of armoured vehicles in Kazakhstan&rsquo s unique geographic conditions. 

 

This will enable it to &ldquo fully meet the needs of the Armed Forces of the Republic of Kazakhstan for amphibious 8x8 vehicles&rdquo , he said.

 

KPE&rsquo s current production capabilities stand at 500 units of various types of armoured vehicles per year per shift.

 

He added that ST Engineering and KPE have plans for &ldquo new stages of collaboration on various projects&rdquo , but did not elaborate. 

The group has also proposed a third-quarter interim dividend of S$0.04 per share

 

SHARES of ST Engineering : S63 +2.92% rose in early trade on Tuesday (Nov 19) after the technology and engineering group reported that its third-quarter revenue was up 14 per cent year on year to S$2.8 billion.

 

As at 10.21 am, the counter gained as much as S$0.18 or 4 per cent to S$4.63 on a cum-dividend basis, with 4.8 million shares changing hands. It later eased to S$4.58 as at 11.03 am, up S$0.13 or 2.9 per cent.

 

On Monday morning, ST Engineering reported that its revenue for the first nine months ended September amounted to S$8.3 billion or 14 per cent higher than the corresponding period a year earlier, driven mainly by its defence and public security as well as commercial aerospace sectors.

 

The group also proposed a third-quarter interim dividend of S$0.04 per share, unchanged from the previous year.

 

Noting that the nine-month revenue made up 73 per cent of its full-year forecast, Morningstar raised its fair value estimate for ST Engineering to S$5.25 from S$4.45 as it anticipates a &ldquo seasonably stronger&rdquo fourth quarter.

 

The research house is projecting 15 per cent growth for FY2024 versus the 8 per cent it originally assumed. It resultantly lifted 2026 to 2033 projections by around 4 per cent, buoyed by strong defense segment revenue and profit carried through from 2024.

 

Morningstar analyst Lorraine Tan is expecting the group to benefit from lower pension liabilities and a slightly lower weighted average cost of capital.

 

&ldquo We think ST Engineering has the ability to maintain a slightly more aggressive capital balance, given its continued accretive strategy,&rdquo said Tan.

 

&ldquo Coupled with a lower interest expense as interest rates ease, we see ST Engineering&rsquo s 2023 to 2028 earnings per share compound annual growth rate to be a healthy 14.4 per cent. We think ST Engineering is reasonably attractive at the current price level,&rdquo she added.

 

On the other hand, Maybank Securities downgraded its call on ST Engineering to &ldquo hold&rdquo from &ldquo buy&rdquo , while lowering its price target to S$4.70 versus S$4.80 previously.

 

Despite acknowledging the group&rsquo s &ldquo strong execution track record&rdquo , analyst Krishna Guha noted a slowdown in its order book growth and said he foresees this to weigh on ST Engineering&rsquo s earnings before interest and taxes margins.

 

The Maybank analyst also highlighted how ST Engineering&rsquo s urban solutions and satellite communications business has been taking longer than expected to turn around, with Q3 segment revenue declining 7 per cent quarter on quarter and 5 per cent year on year.

 

&ldquo Following a 14 per cent year-to-date rise, yields have compressed, and risks are to the downside for earnings growth as the order book tapers off,&rdquo cautioned Guha. 

Singapore Technologies Engineering says it has increased its revenue by 14% y-o-y to $8.3 billion for its 9MFY2024 ended September 30.

 

The jump was led by " significant" 3QFY2024 growth in its defence and public sector segment. In the 9MFY2024, this market segment recorded 18% y-o-y higher revenue growth, reaching $.3.6 billion, says the company in its 3QYF2024 business update.

 

Its commercial aerospace segment generated " good" y-o-y revenue growth as well that is 16% higher in 9MFY2024, reaching $3.3 billion.

 

Meanwhile, another key segment, urban solutions and satellite communications hardly budged with 9MFY2024 revenue that was merely 0.3% more y-o-y. While the urban solutions sub-segment recorded growth, it was offset by further declines in satellite communications.

 

Within 3QFY2024, the company secured $2.2 billion in new contracts, bringing 9MFY2024 wins to $8.3 billion, and the total order book to $26.9 billion.

 

The company plans to maintain its quarterly dividend payout of 4 cents per share, which will go ex on Nov 26 and be paid on Dec 10.