Here's what's keeping ST Engineering’s investors excited

Its electronics sector is poised for a 10% growth.

It has been a new chapter for ST Engineering as it recently changed leadership. More than this, however, investors are becoming giddy as the group's electronics segment is surely in for a brighter day ahead.

According to CIMB analyst Lim Siew Khee, there is no better time than now for ST Engineering's electronics, which will have a steady 10% earnings growth from its wide service offerings.

"The division benefits from multiple positive structural trends including urbanisation,
smart cities development, and increasing demand for data connectivity and security," Lim said.

The analyst noted how investors are generally surprised by the group's competitiveness against global players and big names in the industry including Siemens and Panasonic.

"Investors were also surprised that the software and solutions provided by electronics
were largely proprietarily owned.," she explained.

With this Lim forecast the group have booked around $2.2 billion worth of contracts by the end of this year.

"It has won S$1.1bn as of 1H16, of which more than S$700m were from advanced electronics and info-communication and technology solutions," she said.