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ST Engineering Expands Smart City Presence with New Qatar Contract

Date: October 15, 2024
Broker Name: CGS International


Company Overview

ST Engineering is a leading technology and engineering company based in Singapore, with a strong presence in various industries, including defense, aerospace, and smart city solutions. The company is recognized for its innovative technology solutions across global markets.


Recent Contract Win

ST Engineering has secured a S$60 million smart city contract in Qatar. While the size of the contract is relatively small, CGS International views this as a positive development, signaling the company’s growing presence and future potential for more significant contract wins in the Middle East region.


Financial Outlook

For the upcoming 3Q24 business update, ST Engineering’s revenue is forecasted to come in between S$2.75 billion and S$2.79 billion, reflecting a year-on-year growth of 13-15%. This aligns with market consensus figures, and CGS International maintains an optimistic view on the company’s revenue trajectory.


Investment Recommendation

CGS International reiterates an Add recommendation for ST Engineering, with a target price (TP) of S$5.30. The valuation is based on a 20x CY25F P/E, which reflects the company’s strong growth outlook, particularly in the smart city segment. This price target remains unchanged from prior analyses.

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