Singapore Technologies Engineering Ltd

S63: XSES (SGP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SGD 7.82	Vhjbwn	Grnqstmhp

ST Engineering: Revenue Tracking Expectations, Risk of Impairments to 2023 Profit

Lorraine Tan

Nov 10, 2023

Singapore Technologies Engineering, or STE, is seeing continued orderbook strength, and third-quarter revenue is in line with our expectation. Our forecasts are unchanged, and we leave our fair value estimate at SGD 4.72. We continue to like STE given around a 24% upside to our fair value from its Nov. 9 closing share price. We keep our thesis that STE should see 2023-27 earnings CAGR of 13.7% due to the expansion of its aerospace maintenance, repair, and overhaul, or MRO, facilities, and contributions from U.S.-based tolling solutions company TransCore.

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