SINGAPORE (Oct 19): UOB Kay Hian is maintaining its “buy” call on ST Engineering (STE) with a target price of $3.40 despite a one-off impairment loss of $61 million.

Lead analyst K Ajith notes that while the cessation of operations of the Chinese land systems unit Jiangsu Huatong Kinetics (JHK) was a possibility, the quantum of loss was surprising.

(See also: ST Engineering to write down investments in China JV units)

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