ST Engineering’s electronics arm rakes in the big bucks with $505m of contracts in Q1

Demand for security grows as incursions rise.

ST Engineering’s electronics arm, ST Electronics, has bagged contracts with a total worth of $505m in Q1.

According to the company’s news release, ST Electronics secured rail electronics and intelligent transportation contracts of about $41m, and were inked from both local and overseas clients.

For satellite and broadband communications, ST Electronics clinched contracts to around $91m from government, telecommunication and enterprise users worldwide. The eals are to supply broadband network, satellite network equipment, as well as earth stations.

The biggest moneymakers of the quarter for the company are the advanced electronics and ICT solutions contracts from both the public and private sectors. These agreements total about $373m, and include provision of intelligent security management system, operations, maintenance support, and advanced info-communication and sensor systems and services.

Lee Fook Sun, President of ST Electronics, attributes the company’s string of contract wins to the growing demand for security “as incursions—both physical and cyber—are on the rise.”

ST Engineering notes, though, that these contracts are not expected to materially impact the group’s consolidated net tangible assets per share and earnings per share for the current financial year.