ST Engineering – Annual Report 2009

The following key indicators were extracted from the annual report of Singapore Technologies Engineering (ST Engr) for the year ended 31 December 2009.

 

 

2009

Change over 2008

Turnover

$5.55b

+ 4%

Profit to shareholders

$443.9 m

– 6%

Net Assets per share

52.09¢

– 1.1%

Earnings per share

14.78¢

– 6.5%

Gross Dividend per share

13.28¢

– 15.9%

Dividend yield

4.72%

– 0.44% point

Return on equity (ROE)

28.3%

– 1.7% points

Debt to Equity

85.8%

+33.2% points

 

2009 was a challenging year for ST Engr. Earnings declined 6 per cent despite an increase in the turnover by 4 per cent. Net assets per share declined 1.1 per cent to settle at 52.09¢.

 

As the end of 2009, ST Engr’s order book was $10.3b which was twice the turnover of 2009. The profits to be derived from the future order book are still an unknown.

 

The gross debt to equity ratio increased from 52.6% in 2008 to 85.8% for 2009. The increase is due mainly to the issuance of US$500m of bonds at a fixed coupon of 4.8% in July 2009 for the purpose of funding new capital expenditures, merger and acquisitions and other general corporate purposes. The historical interest cover is 10 times meaning that the earnings is 10 times the interest expenses.

The lowest and highest share prices over the 52-week period were $2.23 and $3.37 respectively. Currently the share price is trading at $3.27 cum-dividend.

 

At $3.27, the Price Earnings (P/E) ratio is 22.1 In comparison, the P/E ratio for multi-industry sector companies such as Sembcorp Industries (10.4) and Keppel Corp (8.8) were much lower.

 

Copyright © 2010, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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