Will ST Engineering’s bustling electronics division fend off its marine woes?

It has already secured 7 Smart Nation projects.

The integrated engineering group is poised to strike a gold mine, which is Singapore’s Smart Nation program, already securing 7 out of 15 pilot projects. However, its marine division remains the glaring chink in its armor.

According to analysts from DBS, ST Engineering’s marine woes are projected to last over the next two years, and it’s counting on its electronics division to pick up the slack.

“Given the government’s proactive approach, we believe ST Engineering’s electronics division is well positioned to secure Smart Nation projects worth more than S$1bn in the near future,” DBS said.

DBS said ST Engineering should experience smooth sailing as its electronics division is more than capable to offset its marine weakness and allow STE to report steady and earnings dividends.

“ST Electronics has already secured 7 out of 15 pilot projects in Jurong Lake district for the Smart Nation project, including 1) Smart Traffic Management System, 2) Location Information in UrbanEnvironment, 3) Estate Energy Management System, 4) Smart Outdoor Lighting, 5) Smoke Detection, 6) Smart Walk and 7) Smart Phone as Sensor,” DBS said.