Following the release of answers to substantial questions by Singapore Technologies Engineering Ltd (ST Engineering) before its Annual General Meeting to be held on 22^nd April;

Mathew George, Ph.D, Analyst, Aerospace, Defense and Security at GlobalData, a leading data and analytics company, offers his view:

“ST Engineering assured its investors of resilience and competitiveness with strong operating performance including cost management, a global diverse portfolio and customer base. The company views the subdued nature of the recovery in the aerospace market as a temporary setback and views its exposure to several tiers of the supply chain as a positive to benefit its long-term growth over the temporary set back caused due to COVID-19.

“Company financials suggest that revenue was down 9%, and profit down 10% from 2019 with ‘Land Systems’ being the only cluster to show growth. Revenue by Type also showed a decline for commercial versus a slight growth for defense. However, this would’ve been largely due to a contract from Singapore for additional units for the ‘Hunter Armoured Fighting Vehicles’ and the issuance of ‘Load Bearing Vests’ as standard for all full-tie national servicemen of Singapore since January 2020.

“From the statements, it looks like the company is managed and focused on a long-term view of growth than short-term setbacks. For instance, in 2020, the company focused on a major reorganization to streamline its business clusters. The aim was to ensure cost efficiency and thereby attain global growth with a focus on strengthening its core businesses. Part of that move was to move out of the pilot training and VIP aircraft space, to focus on commercial maintenance, repair and overhaul (MRO) through the use of technologies to fasten and improve MRO activity.

“In line with this, ST Engineering will look at developing and strengthening its position in the international defense market, the smart cities market, and the aerospace market (both defense and civil). However, these positive statements would also suggest a difficult year for ST Engineering, and with lockdowns being lifted and a renewed focus on commerce globally, the company too is focusing on the positives to look at an upward trajectory from here on.”