ST Engineering smashed records with $6.3b signed deals in 2017

The electronics division is expected to add $2b to the total.

ST Engineering's electronics division has yet to release its total contract wins, but so far, the former has clinched $6.3b of orders in 2017, a record level.

According to CIMB Research, a strong 4Q performance is expected from the electronics division as well.

As of 9M2017, the division has secured $1.5b worth of contracts, comprising $1b of advanced electronics and infocomm projects.

CIMB Research analyst Lim Siew Khee said, "We are hopeful of more contracts for security and traffic management from both the commercial sector and governmental agencies."

The broker estimates the division could end the year with around $2b of contracts, compared to $2.3b in 2016 and $1.6b in 2015.

With the rising oil prices, ST Engineering's marine division could see stronger ship repair and conversion jobs returning. In the third quarter of 2017, the division surprised on the upside from such jobs.

"The only overhang we see is the potential for provision for arbitration with Hornbeck (US$43.5m of revised damages claim vs. STE’s counterclaims of US$3.3m)," Lim added.