To The Moon

🌟🌟🌟ST Engineering $ST Engineering(S63.SI)$  is a global leader in Defence, Aerospace and Smart City Solutions, driving innovation across critical infrastructure and digital systems and serving customers in over 100 countries.

ST Engineering was formed in 1997 with the amalgamation of ST Aerospace, ST Electronics, ST Automotive and ST Marine, a SGD 2 billion listed company.  ST Engineering's largest shareholder is Temasek Holdings with a 51% stake.

ST Engineering's share price has been on a tear and is one of the best performing Singapore Bluechip companies.  Its share price has risen 3.6% in the past 5 days and 15% in just 1 month.  ST Engineering is now up 46% year todate and in 2024, ST Engineering has jumped by 68%.

Is ST Engineering a Good Buy?

Let's check out ST Engineering's Full Year Financial Results ended 31 December 2024 which was reported on 27 February 2025.

The  Group ended the year with a revenue of SGD 11.28 billion, an increase of 12% year on year from SGD 10.1 billion, contributed by all 3 segments. 

Group EBIT reached a new high of SGD 1.08 billion, up 18% year on year from SGD 915 million.  Group Profits before Tax was SGD 863 million, 23% higher year on year from SGD 704 million.  Group Net Profit grew 20% to SGD 702 million from SGD 586 million last year.

All 3 segments did well in 2024.  Commercial Aerospace segment posted a revenue of SGD 4.38 billion, up 12% from SGD 3.91 billion in the previous year.    Defence and Public Security segment had a revenue of SGD 4.94 billion, 16% higher than SGD 4.25 billion in the previous year.  Urban Solutions & Satcom segment posted SGD 1.96 in revenue.

In terms of Group revenue breakdown, Commercial Aerospace accounted for 39% while Defence & Public Security is 44% and Urban Solutions is 17%.  Commercial sales was SGD 7.8 billion and Defence sales was SGD 3.5 billion.  

The Group generated strong operating cash flow of SGD 1.7 billion for 2024, an increase of 46% year on year. 

The Group decreased its unit operating expenses from 11.4% in 2023 to a low of 10.6%.  This was a result of continual focus on cost management, productivity and enhancing operational efficiencies. 

According to Group President and CEO Vincent Chong, ST Engineering delivered a very strong set of results in 2024 despite an uncertain and challenging environment.  ST Engineering has a robust order book and a competitive market position which will underpin its continuing revenue growth and performance.

ST Engineering's order book reached SGD 26.9 billion as of September 30 2024, with SGD 8.3 billion in new contracts secured during the first 9 months of 2024.  SGD 2.6 billion is expected to be delivered by year end, ensuring strong future revenue visibility. 

The Board of Directors has proposed a final dividend of 5 cents per share.  The total dividend for 2024 will be 17 cents per share, an increase from 16 cents per share in 2023.  The current dividend yield is 2.5%.

ST Engineering rose to an all time in March after the company revealed its fresh 5 year targets and plans to raise dividend payouts in 2025 as well as from 2026 if revenue and  profits continue to rise.   The shares reached a record high of SGD 6.93 on March 20.

I have invested in ST Engineering in 2022 and since that time it has rewarded me with both capital growth and dividends. 

As a Singaporean, I am proud of how ST Engineering has grown over the years as its international presence continues to expand to many countries.  These include Middle East, Europe as well as South East Asia, securing contracts across Aerospace, Defence and providing urban solutions.  I also like how ST Engineering is commited to investing in digital data transformation, AI Driven solutions and sustainable urban projects, positioning itself at the forefront of technology driven infrastructure. 

ST Engineering - Made in Singapore, Going Global! 

Go Long Go Strong Go ST Engineering 😍😍😍🇸🇬🇸🇬🇸🇬🌈🌈🌈💰💰💰

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