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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 global technology, defense and engineering group. It operates through the following segments: Aerospace, Electronics, Land Systems, Marine, and Others. The Aerospace segment provides a spectrum of aircraft maintenance, engineering and training services for both military and commercial aircraft operators. The Electronics segment specializes in the design, development and delivery of information communications technologies products, solutions and services for smart cities connectivity, mobility and security. The Land Systems segment delivers customized land systems, security solutions and their related through-life support for defense, homeland security and commercial applications. The Marine segment includes turnkey and sustainable defense and commercial solutions to the marine, offshore and environmental engineering industries. The Others segment involves in research and development, provision of engineering products and solutions, treasury, investment holding and provision of management, consultancy and other support services. The firm uses its technology and innovation to solve real-world problems through its diverse portfolio of businesses across the aerospace, smart city, defense and public security segments. The company was founded in 1967 and is headquartered in Singapore.

Financial Highlights

Dec 2020 SGDUSD
Revenue7,158.28M5,189.46M
Gross Profit1,556.86M1,128.66M
Operating income736.45M533.90M
Income before tax504.01M365.38M
Net income521.84M378.31M
EBITDA1,115.08M808.39M
Diluted EPS0.160.12
Dividends Per Share0.150.10
Total Assets9,809.52M7,422.17M
Total liabilities7,234.73M5,474.01M
Total equity2,292.61M1,734.66M
Operating cash flow1,487.75M1,078.55M
Currency in SGDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 6,683.73M 6,521.06M 6,697.92M 7,868.27M 7,158.28M
Gross Profit 1,284.75M 1,297.71M 1,393.78M 1,658.68M 1,556.86M
Operating income 626.50M 654.18M 683.73M 811.09M 736.45M
Income before tax 526.86M 562.48M 571.69M 656.26M 504.01M
Net income 484.51M 502.63M 494.24M 577.94M 521.84M
EBITDA 873.83M 871.13M 927.77M 1,179.35M 1,115.08M
Diluted EPS 0.15 0.16 0.15 0.18 0.16
Dividends Per Share 0.15 0.15 0.15 0.15 0.15
Total Assets 8,489.95M 8,247.39M 7,876.43M 9,683.09M 9,809.52M
Total liabilities 6,045.75M 5,751.06M 5,341.82M 7,192.09M 7,234.73M
Total equity 2,182.26M 2,215.01M 2,246.37M 2,222.27M 2,292.61M
Operating cash flow 762.66M 802.87M 651.15M 581.58M 1,487.75M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 4,841.01M 4,723.77M 4,963.99M 5,767.69M 5,189.46M
Gross Profit 930.54M 940.04M 1,032.96M 1,215.87M 1,128.66M
Operating income 453.77M 473.87M 506.72M 594.56M 533.90M
Income before tax 381.60M 407.45M 423.69M 481.06M 365.38M
Net income 350.93M 364.09M 366.29M 423.65M 378.31M
EBITDA 632.91M 631.04M 687.59M 864.50M 808.39M
Diluted EPS 0.11 0.11 0.11 0.13 0.12
Dividends Per Share 0.10 0.10 0.11 0.10 0.10
Total Assets 5,876.62M 6,171.35M 5,778.75M 7,201.19M 7,422.17M
Total liabilities 4,184.78M 4,303.39M 3,919.16M 5,348.67M 5,474.01M
Total equity 1,510.52M 1,657.44M 1,648.11M 1,652.68M 1,734.66M
Operating cash flow 552.39M 581.59M 482.58M 426.32M 1,078.55M

Valuation Measures

Dec 2020
PER22.81
ROA5.35%
ROE23.11%
Operating margin10.28%
Profit margin7.29%

Key executives

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

Shareholders

  • Temasek Holdings Pte Ltd. (Investment Company) (49.7%)
  • Capital Research & Management Co. (Global Investors) (4.4%)
  • BlackRock Fund Advisors (1.6%)
  • The Vanguard Group, Inc. (1.2%)
  • Temasek Capital Pte Ltd. (0.9%)
  • Norges Bank Investment Management (0.8%)
  • SHANWOOD DEVELOPMENT PTE LTD (0.6%)
  • Newton Investment Management Ltd. (0.5%)
  • Matthews International Capital Management LLC (0.5%)
  • Massachusetts Financial Services Co. (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

  • 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
  • CZG - Ceska Zbrojovka Group SE
  • AerSale Corporation
  • Gilat Satellite Networks Ltd.
  • Astec Industries, Inc.
  • EchoStar Corporation Class A
Last Updated on 24 Sep, 2021

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