In key news on Singapore stocks, Singapore Technologies Engineering Ltd., or ST Engineering (SG:S63), reported impressive numbers in its 2023 annual results. The company generated an 11.8% growth in its revenue of S$10.1 billion, while its EBIT grew by 24.4% for the full year. ST Engineering shares ended flat on Thursday.
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ST Engineering is a multinational conglomerate that specializes in technology, defence, and engineering services, catering to clients in over 100 countries.
Let’s take a look at the details.
Highlights from the 2023 Results
For the full year, ST Engineering’s profit attributable to shareholders increased by 10% year-over-year to S$586 million. As of December 31, 2023, the company’s order book remained solid at S$27.4 billion, well-supported by new wins. Around S$7.9 billion of the order book is expected to be delivered this year.
Among its segments, Commercial Aerospace recorded revenue growth of 31% to S$3.91 billion, exceeding the pre-COVID levels. Overall, last year’s growth was attained through a blend of business expansion, increased productivity, and cost-saving initiatives.
Speaking of shareholder returns, the board has recommended a final dividend of S$0.04 per share, maintaining the same level as the previous year. This would result in a total dividend of S$0.16 per share for the full year, consistent with 2022.
Is SGX S63 a Buy or Sell?
According to TipRanks, S63 stock has received a Moderate Buy consensus rating based on two Buy recommendations. The ST Engineering share price forecast is S$4.38, which implies an upside of 10% on the current trading levels.
