Singapore Technologies Engineering (ST Engineering) has reported revenue of $2.0 billion for the 1QFY2022 ended March, 13% higher than the revenue of $1.8 billion in the same period the year before.

The higher revenue was led by revenue growth across the group’s three segments, commercial aerospace, urban solutions & satcom and defence & public security.

Within the commercial aerospace segment, revenue increased 22% y-o-y to $674 million due to the gradual opening of borders, strong demand for passenger to freighter (PTF) aircraft, healthy orders for nacelles and a gradual recovery in the demand for maintenance, repair and overhaul (MRO) works.

Its PTFs for its A320/A321 and A330 are booked through to 2025 and 2026 respectively.

The segment secured some $0.9 billion of new contracts in the 1QFY2022.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ntuc-income-reports-premium-growth-fy2021-lower-net-operating-surplus-fair-value?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>NTUC Income reports premium growth for FY2021 but lower net operating surplus on fair value loss</a>

For the 1QFY2022, ST Engineering’s urban solutions & satcom revenue grew 12% y-o-y to $297 million due to the higher number of deliveries for the group’s smart city project.

Product redesign, supply chain diversification and price adjustment within the segment mitigated the global chip shortage situation.

The segment clinched $0.2 billion of new contracts during the quarter.

Revenue for defence & public security grew 9% y-o-y to $1.06 billion thanks to strong growth from its digital systems & cyber business.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/serial-system-reports-lower-1qfy2022-earnings-allowance-obsolete-stocks?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks</a>

According to the group, the segment will continue to leverage on the trend in hybrid and secure cloud migration among enterprises and accelerated adoption of operational technology (OT) cybersecurity solutions driven by OT/IT convergence.

The segment clinched $1.3 billion of new contracts during the quarter.

As at March 31, ST Engineering’s order book remains robust at $21.3 billion with $5.8 billion expected to be delivered in the remaining months of 2022.

Shares in ST Engineering closed 1 cent lower or 0.25% down at $3.98 on May 12.

ST Engineering reports 13% y-o-y growth in 1QFY2022 group revenue of $2.0 bil

DBS suspends coverage of Bukit Sembawang Estates; keeps 'buy'

CGS-CIMB downgrades GKE with lower target price of 10 cents

Investors should focus on equities in the current environment with more defensive bias: Julius Baer

Businesses in Singapore eager to hire international talent with the rise of remote work

ST Engineering reports 13% y-o-y growth in 1QFY2022 group revenue of $2.0 bil

Related Stories

Highlights

China's shock Covid shift adds fuel to world-beating stock rally

Related Stories

Broker's Digest: Silverlake Axis, Hyphens Pharma International, Yangzijiang Financial Holding, ST Engineering

UOB Kay Hian re-initiates 'buy' on ST Engineering with TP of $4.60

Broker's Digest: CDL, BRC Asia, ST Engineering