ST Engineering has announced ambitious targets for the period 2024 to 2029, projecting an 8.6% compound annual growth rate (CAGR) in revenue and up to 13.6% in profit. This follows the successful delivery of its previous five-year targets, suggesting confidence in achieving these new goals. The company is particularly optimistic about its Commercial Aerospace and Defence & Public Security segments, which are expected to drive double-digit profit growth from 2024 to 2027.
The revised dividend policy indicates a minimum dividend per share of 18 cents, with an annual increase of at least 1 cent. Analyst Shekhar Jaiswal from RHB maintains a “BUY” recommendation for ST Engineering, with a target price of SGD7.80, up from SGD5.90, reflecting a 19% upside potential.
The company’s robust order book provides nearly three years of revenue visibility, bolstered by strong aviation maintenance, repair, and overhaul (MRO) work. Additionally, contributions from TransCore and the restructuring of the Urban Solutions & Satellite Communications segment are expected to further enhance growth.
ST Engineering’s strategic focus on these areas underscores its commitment to long-term growth and shareholder value. The company’s ability to meet its targets will be closely watched by investors, given the promising outlook for its key business segments.
“`
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
