ST Engineering gets a welcome reboot

SINGAPORE (Nov 14): UOB Kay Hian is maintaining its “buy” call on ST Engineering (STE) with a target price of $3.42 a it believes the worst is over for ST Marine which has cut its exposure to the offshore and marine sector with lower provisions likely in the coming quarters.

“We believe STE’s confidence in its new initiatives is also partly behind the attempt to “defend” its final dividend payout. We recommend investors stay invested as earnings volatility has likely peaked,” says lead analyst K Ajith in a report last Friday.

To recap, STE’s 3Q headline net profit fell 42% as ST Kinetics exited China. Excluding the $61 million charge on cessation of Chinese land systems unit JHK, STE’s 3Q net profit would have risen 3% y-o-y.

---

Related Stories

• Brokers’ Digest: CDL, PropNex, PLife REIT, KIT, SingPost, Grand Banks Yachts, Nio, Frencken, ST Engineering, UOB
• Prospects of better FY2025 earnings inspire new ideas for ThaiBev
• Morningstar believes Seatrium will turn profitable in 2024; other analysts keep ‘add’ and ‘buy’ calls

---