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Electronic Technology

Singapore Technologies Engineering Ltd.

  • 3.96 SGD
  • +0.04
  • +1.02%
  • Singapore
    May 22, 2019
  • Ticker
    SES(S63)
  • Prev. close
    3.92
  • Market cap (SGD)
    12,240.18M
  • Market cap (USD)
    8,879.78M
  • Shares
    3,122.49M

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 2018 SGDUSD
Revenue6,697.92M4,963.99M
Gross Profit1,393.78M1,032.96M
Operating income683.73M506.72M
Income before tax571.69M423.69M
Net income494.24M366.29M
EBITDA927.77M687.59M
Diluted EPS0.150.11
Dividends Per Share0.150.11
Total Assets7,876.43M5,778.75M
Total liabilities5,341.82M3,919.16M
Total equity2,246.37M1,648.11M
Operating cash flow651.15M482.58M
Currency in SGDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 6,539.43M 6,335.02M 6,683.73M 6,619.49M 6,697.92M
Gross Profit 1,313.52M 1,277.55M 1,284.75M 1,313.92M 1,393.78M
Operating income 662.63M 628.76M 626.50M 672.26M 683.73M
Income before tax 593.50M 571.96M 526.86M 573.96M 571.69M
Net income 531.95M 529.03M 484.51M 511.88M 494.24M
EBITDA 833.14M 816.06M 873.83M 889.22M 927.77M
Diluted EPS 0.17 0.17 0.15 0.16 0.15
Dividends Per Share 0.15 0.15 0.15 0.15 0.15
Total Assets 8,406.17M 8,263.63M 8,489.95M 8,584.86M 7,876.43M
Total liabilities 6,052.17M 5,918.56M 6,045.75M 6,063.47M 5,341.82M
Total equity 2,132.20M 2,132.05M 2,182.26M 2,239.98M 2,246.37M
Operating cash flow 628.66M 479.52M 762.66M 802.87M 651.15M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 5,161.39M 4,606.42M 4,841.01M 4,795.07M 4,963.99M
Gross Profit 1,036.73M 928.95M 930.54M 951.78M 1,032.96M
Operating income 523.00M 457.19M 453.77M 486.97M 506.72M
Income before tax 468.43M 415.89M 381.60M 415.77M 423.69M
Net income 419.85M 384.68M 350.93M 370.80M 366.29M
EBITDA 657.57M 593.38M 632.91M 644.13M 687.59M
Diluted EPS 0.13 0.12 0.11 0.11 0.11
Dividends Per Share 0.11 0.10 0.10 0.10 0.11
Total Assets 6,343.80M 5,825.00M 5,876.62M 6,423.87M 5,778.75M
Total liabilities 4,567.33M 4,171.97M 4,184.78M 4,537.16M 3,919.16M
Total equity 1,609.08M 1,502.87M 1,510.52M 1,676.12M 1,648.11M
Operating cash flow 496.18M 348.67M 552.39M 581.59M 482.58M

Valuation Measures

Dec 2018
PER22.01
ROA6.00%
ROE22.03%
Operating margin10.20%
Profit margin7.37%

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) (2.3%)
  • The Vanguard Group, Inc. (1.3%)
  • BlackRock Fund Advisors (1.0%)
  • Temasek Capital Pte Ltd. (0.9%)
  • Norges Bank Investment Management (0.8%)
  • Eastspring Investments (Singapore) Ltd. (0.7%)
  • Allianz Global Investors Asia Pacific Ltd. (0.4%)
  • Massachusetts Financial Services Co. (0.4%)
  • Matthews International Capital Management LLC (0.4%)

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

  • Singapore Technologies Engineering (Europe) Ltd.
  • Singapore Technologies Engineering Ltd. /2 Subs/
  • Pacific Flight Services Pte Ltd.
  • ST Synthesis Pte Ltd.
  • ST Engineering Financial II Pte Ltd.
  • Pacific Flight Service Pte Ltd.
  • ST Engineering Ventures Pte Ltd.
  • Moser Marino & Figli SRL
  • Total Engine Asset Management 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.
  • Singapore Technologies Shipbuilding & Engineering Ltd.
  • ST Aerospace Engines Pte Ltd.
  • ST Engineering Financial I Ltd.
  • FusionTech Pte Ltd.
  • ST Aerospace Engineering Pte Ltd.
  • Chartered Industries of Singapore Pte Ltd.
  • SAS Component AB
  • Visiontech Investment Pte Ltd.
  • Vision Technologies Electronics, Inc.
  • Vision Technologies Systems, Inc.
  • Singapore Technologies Aerospace Ltd.
  • ST Electronics (Info-Comm Systems) Pte Ltd.

Competitors

  • ViaSat, Inc.
  • SOGECLAIR SA
  • AAR CORP.
  • Comtech Telecommunications Corp.
  • Gilat Satellite Networks Ltd.
  • Astec Industries, Inc.
  • EchoStar Corporation Class A
Last Updated on 22 May, 2019

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