ST Engineering's order book pegged to hit a record $13b

Thanks to defence-related business.

According to Maybank Kim Eng, based on the recent Singapore Budget 2013, Singapore’s defence expenditure is expected to come in at SGD12.3b for 2013, capping a CAGR of 4% since 2003.

This increasing trend over the years will underpin future growth of STE’s defence-related business, primarily derived from its Land Systems division (ST Kinetics).

Here's more from Maybank Kim Eng:

In FY2012, defence-related sales comprised 37% of total revenue. Bumper Navy contract to push orderbook past record. Lending further weight as the key client of ST Engineering, MINDEF, through the Singapore Navy recently entered into a vessel design and build contract for 8 patrol vessels which we estimate could come in at a value of SGD1.8b, extrapolating from past contract values.

We reiterate our view that this contract is likely to push STE’s orderbook to record levels once again (~SGD13b), catalysing the stock to reach new heights.

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