ST Engineering's orderbook hit $13.5b

Its aerospace recorded strong orders during the past quarter.

After a strong revenue growth in the past quarter, ST Engineering is poised to be supported by its strong orderbook over the near-to-medium term.

According to OCBC Investment Research, the group will be buttressed by its order book of $13.5b as the aerospace and electronics sectors recorded strong new orders during the past quarter.

"However, on weak performance from the marine sector, ST Engineering has revised its guidance for FY17 profits before taxes from higher to comparable to FY16, whilst maintaining its guidance for FY17 revenue to be comparable to FY16," analyst Eugene Chua said.

Over the longer-term, Chua said the outlook remains positive especially for the group's electronics sector due to the high-growth areas relating to Singapore’s smart nations initiatives, cyber security, and smart city business.