ST Eng'g net profit to rise 21% in 2024 on $7.9b order book

An analyst projects continued growth for ST Engineering driven by its businesses.

Projections from RHB Group showed that ST Engineering will continue to grow, with its net profit seen to reach $713m in 2024.

This will be a 21.57% increase from $586.5m the company reported in 2023.

In a report, RHB Group analyst Shekhar Jaiswal said near-term earnings growth is expected to remain strong as its commercial aerospace business “benefits from higher MRO earnings on the back of better aviation traffic, higher nacelle sales, and improved profits for its passenger-to-freighter (PTF) conversion business.”

He also expects earnings from urban solutions and satcom units to improve, fueled by right-sizing exercise and earnings contribution from its TransCore acquisition.

ALSO READ: ST Engineering’s Urban Solutions secures smart car park contract at Dubai Mall

Meanwhile, the defence and public security business’ profitability should be supported by the gradual delivery of its orderbook, he added.

ST Engineering has an order backlog of $27.4b, which means a book-to-bill ratio of 2.7 years. The company is expected to deliver $7.9b of the orderbook in 2024, accounting for 73% of the 2024 revenue estimate at $10.88b

RHB Group expects ST Engineering to continue paying $0.04 per quarter in dividends

From 2023 to 2026, RHB Group is seeing a 15% compound annual growth rate for ST Engineering’s profit.

Follow the link for more news on

ST Engineering

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia