Q3 reported Net Profits were up 10%, however if we take away one off items the core earnings were actually down 3%. The weakness mainly came from the Marine segment, in which revenues took a steep drop of 39%!
Management has guided "Barring unforeseen circumstances, the Group expects FY2015 Revenue to be comparable, while PBT is expected to be lower than that of FY2014.”
As such I'm lowering my estimates of STE to make about 16 cents per share full year along with a total dividend payout of about 14 cents. This translates to a PE of 20 times and a yield of 4.3% which makes STE fairly or slightly over-valued.
| Name |
Current Price |
Weightage |
PE |
Yield |
Payout Ratio |
Industry |
| ARA |
1.41 |
14.7% |
16.6 |
3.5% |
59% |
Property Management |
| CapitaCommercial Trust |
1.37 |
14.2% |
15.9 |
6.3% |
100% |
Commercial Reit |
| Starhub |
3.68 |
7.7% |
18.4 |
5.4% |
100% |
Telecommunications |
| M1 |
2.83 |
11.8% |
14.9 |
6.0% |
89% |
Telecommunications |
| ST Engineering |
3.24 |
8.1% |
20.3 |
4.3% |
88% |
Defense & Engineering |
| Sembcorp Industries |
3.52 |
7.3% |
10.1 |
4.0% |
40% |
Marine & Utilities |
| OCBC |
9.12 |
14.4% |
9.8 |
3.9% |
39% |
Banking & Finance |
| UOB |
20.61 |
12.9% |
10.6 |
3.6% |
38% |
Banking & Finance |
| STI ETF |
3.05 |
8.9% |
12.0 |
3.2% |
38% |
Exchange Traded Fund |
|
|
Total Weight |
Portfolio PE |
Portfolio Yield |
Payout Ratio |
|
|
|
100% |
13.2 |
4.5% |
60% |
|
...
