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ST Engineering's earnings could nosedive owing to weak aerospace business: RHB

Broker's Calls

ST Engineering's earnings could nosedive owing to weak aerospace business: RHB

Jeffrey Tan Published on Tue, Apr 28, 2020 / 1:13 PM GMT+8

A-

A+

SINGAPORE (April 28): ST Engineering is expected to record earnings decline of 3-9% for FY20-22, largely on the back of lower earnings contribution from its aerospace segment, according to RHB Securities.

This comes as the novel coronavirus (Covid-19) pandemic has grounded the global aviation industry and impacted the entire value chain.

The brokerage warns that maintenance, repair and operations (MRO) spending will be deferred as airlines shift into a cash conservation mode.

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