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Electronic Technology

Singapore Technologies Engineering Ltd.

Company Background

Singapore Technologies Engineering (ST Engineering) is one of Asia's largest defense and engineering groups. It has over 100 subsidiaries and associate companies spanning in 24 countries, which cover its four core businesses -- aerospace, land systems, electronics and marine. Singapore's sovereign wealth fund, Temasek Holdings, holds a more than 50% stake. In 2013, it acquired 90% of an automotive maintenance company in Brazil. Tan Pheng Hock, a veteran who joined ST Marine in 1981, has led the company as president and CEO since 2002.

ST Engineering was born in 1997 through a merger of four publicly-listed companies. Its origins trace back to 1967, when one of the precursors, Chartered Industries of Singapore, was set up by the newly-independent Singaporean government. Its original role was to make ordnance for the Singapore Armed Forces, and the SAF remains ST Engineering's top client today. The company is now the world's largest producer of 40mm munitions. The company has also diversified over the years, and now supplies both military customers and commercial ones in over 100 countries. Non-defense business makes up more than 60% of total revenue. In aviation services, it is the world's top airframe MRO (maintenance, repair and overhaul) provider, with a large presence in China.

Business Summary

Singapore Technologies Engineering Ltd. is a holding company, which provides engineering and related services. It operates through the following segments: Aerospace, Electronics, Land Systems, Marine, and Others. The Aerospace segment provides spectrum maintenance and engineering services that include air-frame, engine and component maintenance, repair and overhaul, engineering design, development, and technical services; and aviation materials and management services, including total aviation support. The Electronics segment delivers system solutions to government, commercial, defence, and industrial customers. The Land Systems segment provides design and engineering services, manufacture, sales and know-how transfer of military and commercial vehicles, automotive subsystems, robotic systems, armament, weapons, weapon systems, ammunition and explosives. The Marine segment provides turnkey building, repair, and conversion services for a naval and commercial vessel. The Others segment consists of research and development, provision of engineering products and solutions, treasury, investment holding and provision of management, consultancy and other support services. The company was founded in 1967 and is headquartered in Singapore.

Financial Highlights

Dec 2019 SGDUSD
Revenue7,868.27M5,767.69M
Gross Profit1,658.68M1,215.87M
Operating income811.09M594.56M
Income before tax656.26M481.06M
Net income577.94M423.65M
EBITDA1,179.35M864.50M
Diluted EPS0.180.13
Dividends Per Share0.150.10
Total Assets9,844.90M7,321.53M
Total liabilities7,353.90M5,469.01M
Total equity2,222.27M1,652.68M
Operating cash flow581.58M426.32M
Currency in SGDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 6,335.02M 6,683.73M 6,521.06M 6,697.92M 7,868.27M
Gross Profit 1,277.55M 1,284.75M 1,297.71M 1,393.78M 1,658.68M
Operating income 628.76M 626.50M 654.18M 683.73M 811.09M
Income before tax 571.96M 526.86M 562.48M 571.69M 656.26M
Net income 529.03M 484.51M 502.63M 494.24M 577.94M
EBITDA 816.06M 873.83M 871.13M 927.77M 1,179.35M
Diluted EPS 0.17 0.15 0.16 0.15 0.18
Dividends Per Share 0.15 0.15 0.15 0.15 0.15
Total Assets 8,263.63M 8,489.95M 8,247.39M 7,876.43M 9,844.90M
Total liabilities 5,918.56M 6,045.75M 5,751.06M 5,341.82M 7,353.90M
Total equity 2,132.05M 2,182.26M 2,215.01M 2,246.37M 2,222.27M
Operating cash flow 479.52M 762.66M 802.87M 651.15M 581.58M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 4,606.42M 4,841.01M 4,723.77M 4,963.99M 5,767.69M
Gross Profit 928.95M 930.54M 940.04M 1,032.96M 1,215.87M
Operating income 457.19M 453.77M 473.87M 506.72M 594.56M
Income before tax 415.89M 381.60M 407.45M 423.69M 481.06M
Net income 384.68M 350.93M 364.09M 366.29M 423.65M
EBITDA 593.38M 632.91M 631.04M 687.59M 864.50M
Diluted EPS 0.12 0.11 0.11 0.11 0.13
Dividends Per Share 0.10 0.10 0.10 0.11 0.10
Total Assets 5,825.00M 5,876.62M 6,171.35M 5,778.75M 7,321.53M
Total liabilities 4,171.97M 4,184.78M 4,303.39M 3,919.16M 5,469.01M
Total equity 1,502.87M 1,510.52M 1,657.44M 1,648.11M 1,652.68M
Operating cash flow 348.67M 552.39M 581.59M 482.58M 426.32M

Valuation Measures

Dec 2019
PER21.26
ROA6.52%
ROE25.86%
Operating margin10.30%
Profit margin7.34%

Key executives

  • President, CEO & Non-Independent Director: Sy Feng Chong
  • Chief Operating Officer: Serh Ghee Lim
  • Chief Financial Officer: Chee Keng Foo
  • Chief Information Officer: Bernard Chew
  • Chief Technology & Digital Officer: Weng Yip Chan

Shareholders

  • Temasek Holdings Pte Ltd. (Investment Company) (49.7%)
  • Capital Research & Management Co. (Global Investors) (4.2%)
  • BlackRock Fund Advisors (1.6%)
  • The Vanguard Group, Inc. (1.5%)
  • Temasek Capital Pte Ltd. (0.9%)
  • Norges Bank Investment Management (0.8%)
  • Newton Investment Management Ltd. (0.5%)
  • Massachusetts Financial Services Co. (0.4%)
  • Matthews International Capital Management LLC (0.3%)
  • Pyrford International Ltd. (0.3%)

Contact Details

  • Website:http://www.stengg.com
  • Address: No. 07-01, ST Engineering Hub, 1 Ang Mo Kio Electronics Park Road, Singapore, 567710, Singapore
  • Phone: +65.6722.1818

Related Companies

  • ST Engineering North America, Inc.
  • ST Engineering RHQ Ltd.
  • Singapore Technologies Engineering Ltd. /2 Subs/
  • ST Engineering Treasury Pte Ltd.
  • Pacific Flight Services Pte Ltd.
  • ST Synthesis Pte Ltd.
  • Precision Products Singapore Pte Ltd.
  • Pacific Flight Service Pte Ltd.
  • iDirect Asia Pte Ltd.
  • ST Engineering Ventures Pte Ltd.
  • ST Aerospace International Structures Pte Ltd.
  • Moser Marino & Figli SRL
  • Singapore Test Services Pte Ltd.
  • Composite Technology International Pte Ltd.
  • ST Electronics (Satellite Systems) Pte Ltd.
  • Singapore Technologies Dynamics Pte Ltd.
  • ST Engineering Co., Ltd.
  • ST Aerospace Systems Pte Ltd.
  • ST Trustees Ltd.
  • Double Helix Pte Ltd.
  • ST Electronics (Shanghai) Co., Ltd.
  • ST Education & Training Pte Ltd.
  • ST Electronics (Info-security) Pte Ltd.
  • Singapore Technologies Shipbuilding & Engineering Ltd.
  • ST Aerospace Engines Pte Ltd.
  • ST Engineering Financial I Ltd.
  • FusionTech Pte Ltd.
  • Chartered Industries of Singapore Pte Ltd.
  • SAS Component AB
  • Visiontech Investment Pte Ltd.

Competitors

  • SOGECLAIR SA
  • ViaSat, Inc.
  • Gilat Satellite Networks Ltd.
  • Astec Industries, Inc.
  • EchoStar Corporation Class A
  • Haemonetics Corporation
Last Updated on 27 Oct, 2020

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