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Acquisition of MRAS raises ST Engineering’s value proposition

PC Lee
PC Lee10/1/2018 11:16 AM GMT+08  • 2 min read
Acquisition of MRAS raises ST Engineering’s value proposition
SINGAPORE (Oct 1): Sales from ST Engineering’s newly acquired Middle River Aircraft Systems (MRAS) is expected to rise by 10% in FY19 ending June.
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SINGAPORE (Oct 1): Sales from ST Engineering’s newly acquired Middle River Aircraft Systems (MRAS) is expected to rise by 10% in FY19 ending June.

Assuming that the acquisition is completed by 1Q19, UOB KayHian estimates that MRAS 2019 net profit contribution could reach $39 million or a 6.7% increase over its prior estimate.

To recap, MRAS' revenue consists of engine nacelle production and their thrust reversers, complex aero-structures for commercial and military aircraft as well as sales of spares and maintenance and repair and overhaul. Nacelle production is expected to account for at least 50% of revenue, according to UOB analyst K Ajith in a Monday report.

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