RHB Bank Adjusts Singapore Technologies Engineering’s Price Target to SG$4.05, Maintains Outperform Rating
June 19, 2023
🌥️Trending News
SINGAPORE ($SGX:S63): Recently, analysts polled by have given ST Engineering an average rating of outperform, with price targets ranging from SG$3.15 to SG$4.60. RHB Bank has adjusted the price target to SG$4.05 from SG$4.10 and maintained its rating at Buy. The investment research firm’s analysts have highlighted ST Engineering’s sound fundamentals in the defence and electronics businesses, as well as its growing presence in the aerospace sector as drivers of its stock performance.
In addition, they noted that the company has managed to maintain steady performance despite challenging economic conditions. They are optimistic about its future prospects as well, citing the company’s strong balance sheet, strong order book for MRO and other services, and successful partnerships and collaborations with international companies. RHB Bank believes that the company’s strong financials should further support its performance in the years ahead. With a price target of SG$4.05, it is optimistic that ST Engineering will deliver solid returns for investors in the near future.
Stock Price
On Thursday, Singapore Technologies Engineering (ST Engineering) saw its stock opened at SG$3.6 and closed at the same price, representing a 0.3% decrease from its prior closing price of SG$3.7. Taking into consideration the current market situation, RHB Bank has adjusted the company’s price target to SG$4.05 while maintaining its outperform rating. The Singapore-based company offers a wide range of integrated solutions in the aerospace, electronics, land systems, and marine sectors, with footprint in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region.
It also provides a wide range of services such as consulting and engineering services, asset management and maintenance services, and training and simulation services to meet the needs of its customers. With the price target adjustment made by RHB Bank, investors are encouraged to look towards the company’s long-term prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for S63. More…
| Total Revenues | Net Income | Net Margin |
| 9.04k | 535.01 | 5.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for S63. More…
| Operations | Investing | Financing |
| 673.1 | -4.57k | 3.7k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for S63. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.96k | 12.31k | 0.77 |
Key Ratios Snapshot
Some of the financial key ratios for S63 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | -3.3% | 8.1% |
| FCF Margin | ROE | ROA |
| -3.2% | 19.4% | 3.1% |
Analysis
At GoodWhale, we recently conducted a financial analysis of Singapore Technologies Engineering. After examining their financials, we have determined that Singapore Technologies Engineering is a medium risk investment in terms of financial and business aspects. We detected two risk warnings in the income sheet and balance sheet that merit further investigation. For more detailed analysis, we recommend registering with us to check it out. More…
Peers
The competition in the engineering industry is fierce, especially between Singapore Technologies Engineering Ltd (STEL) and its many competitors. Companies such as CSSC Offshore & Marine Engineering (Group) Co Ltd, Paras Defence And Space Technologies Ltd, and Laxmipati Engineering Works Ltd all strive to out-perform and out-innovate one another to gain the upper hand in the industry. This competition has resulted in a great deal of innovation and progress, pushing all companies involved to be at the forefront of engineering technology.
– CSSC Offshore & Marine Engineering (Group) Co Ltd ($SHSE:600685)
CSSC Offshore & Marine Engineering (Group) Co Ltd is a leading provider of offshore and marine engineering services in China. The company specializes in the design and construction of ships, offshore platforms, drilling rigs, and other related marine engineering products. As of 2022, the company has a market capitalization of 22.33 billion and a return on equity of 1.45%. The company’s market capitalization reflects its large size and its success in competing in the offshore and marine engineering services industry. The return on equity of 1.45% indicates that the company is generating a satisfactory level of return on its investments. CSSC Offshore & Marine Engineering (Group) Co Ltd has consistently delivered strong performance over the years and is well-positioned to capitalize on future growth opportunities in the industry.
– Paras Defence And Space Technologies Ltd ($BSE:543367)
Paras Defence And Space Technologies Ltd is a leading defense and space technology provider based in India. The company is involved in the design, development, and manufacture of electronic systems, subsystems, and components for the defense and aerospace industries. The company has a market capitalization of 24.11B as of 2022 and boasts a Return on Equity of 7.89%. This reflects its strong financial performance, as well as its success in developing innovative and reliable defense and aerospace technology products.
– Laxmipati Engineering Works Ltd ($BSE:537669)
Laxmipati Engineering Works Ltd is an Indian automotive parts manufacturer located in Gujarat. The company specializes in manufacturing a wide range of components for the automotive industry, including exhausts, engine components, chassis components and more. As of 2022, the company has a market capitalization of 207.07M and a return on equity of 39.42%, indicating its strong financial performance. The market cap is a measure of the company’s current market value, while the return on equity is a measure of the company’s profitability. Both of these figures show that Laxmipati Engineering Works Ltd is a successful and profitable company, indicating that it is well positioned to continue its successful operations in the future.
Summary
Analysis of Singapore Technologies Engineering has been generally positive, with analysts giving the company an average rating of “Outperform” and an average price target of SG$4.05. RHB Bank recently adjusted its price target to SG$4.05 from SG$4.10, but still maintains its “Buy” rating. Price targets from analysts for this company range from SG$3.15 to SG$4.60. Investors should bear in mind that investing in any stock involves risks and it is important to undertake research and analysis before investing.
