ST Engineering S$370m of aerospace contracts

ST Engineering (STE) yesterday announced that its aerospace segment won new contracts worth ~S$370m in 2Q12. Together with the ~S$210m worth of new contracts won by its electronics announced last week, STE has announced a total of ~S$580m of new contracts in 2Q12. These contracts are not expected to have any material impact on the consolidated financials of the group for the current financial year.

With the strong order flow in 2Q12 adding to its order book of S$12.2b at end-1Q12, we maintain our fair value estimate of S$3.50/share and BUY rating on STE.