ST Engineering (STE) has performed poorly for the past few months, and I have added it to my watchlist. STE is an integrated engineering group with 4 main business segments - Aerospace, Electronics, Marine and Land Systems. For FY 2016, the group generated $6.68 billion in revenue and $484.5 million in net profit, representing a net profit margin of 7.2%. The revenue breakdown was 65% from commercial sales and 35% from defence sales. Earnings per share was 15.6 cents, and the group distributed 15.0 cents of dividends to shareholders.
STE Annual Report 2016
This year, 9M 2017 earnings per share stands at 11.03 cents, up from 10.12 cents last year. Profits were higher mainly because of a one-off charge of $61.1 million incurred in 2016, when its specialty vehicle business in China was written off.
STE Annual Report 2016
For an overview, STE's Aerospace segment was the largest in terms of revenue (37%) and...