ST Engineering

ST Engineering: STE announced that its aerospace arm, ST Aerospace, secured new contracts worth about US$450m in 4Q12. The contracts are for airframe, component and engine maintenance, as well as engineering and development. The 4Q12 wins were up 29% yoy and represented the seventh consecutive quarter of yoy new order increase for the division. Recall on 8 Jan 2013, OCBC noted that ST Electronics, the electronics arm of ST Engineering, has announced that it has secured about S$192m worth of contracts for rail electronics, intelligent transportation, satellite communications and smart utility projects in 4Q12. One of the rail electronics contracts is for the implementation of a Supervisory Control & Data Acquisition system for Malaysia’s Sungai Buloh-Kajang mass rapid transit line. This marks progress for ST Electronics into the country, which is new territory for the division’s rail electronic solutions. DB has a BUY rating and TP of $3.95 of the counter.