Electronic Technology
Singapore Technologies Engineering Ltd.
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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 | SGD | USD |
| Revenue | 7,868.27M | 5,767.69M |
| Gross Profit | 1,635.46M | 1,198.84M |
| Operating income | 787.87M | 577.53M |
| Income before tax | 656.26M | 481.06M |
| Net income | 577.94M | 423.65M |
| EBITDA | 1,156.12M | 847.47M |
| Diluted EPS | 0.18 | 0.13 |
| Dividends Per Share | 0.15 | 0.10 |
| Total Assets | 9,521.27M | 7,080.85M |
| Total liabilities | 7,030.27M | 5,228.32M |
| Total equity | 2,222.27M | 1,652.68M |
| Operating cash flow | 581.58M | 426.32M |
| Currency in SGD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 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 | 1,635.46M |
| Operating income | 628.76M | 626.50M | 654.18M | 683.73M | 787.87M |
| 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 | 1,156.12M |
| 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 | 9,521.27M |
| Total liabilities | 5,918.56M | 6,045.75M | 5,751.06M | 5,341.82M | 7,030.27M |
| 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 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 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 | 1,198.84M |
| Operating income | 457.19M | 453.77M | 473.87M | 506.72M | 577.53M |
| 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 | 847.47M |
| 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 | 7,080.85M |
| Total liabilities | 4,171.97M | 4,184.78M | 4,303.39M | 3,919.16M | 5,228.32M |
| 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 | |
| PER | 21.23 |
| ROA | 6.64% |
| ROE | 25.86% |
| Operating margin | 10.01% |
| Profit margin | 7.34% |
Key executives
- President, Chief Executive Officer & Director: Sy Feng Chong
- Chief Financial Officer: Chee Keng Foo
- Chief Information Officer: Bernard Chew
- Chief Technology & Digital Officer: Weng Yip Chan
- Chief Corporate Officer: Ai Ching Tan
Shareholders
- Temasek Holdings Pte Ltd. (Investment Company) (49.7%)
- Capital Research & Management Co. (Global Investors) (2.9%)
- 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%)
- Allianz Global Investors Asia Pacific 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
- ViaSat, Inc.
- Astec Industries, Inc.
- SOGECLAIR SA
- Gilat Satellite Networks Ltd.
- EchoStar Corporation Class A
- Haemonetics Corporation
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Last Updated on 3 Apr, 2020