ST Engg worth a look on record orderbook

Singapore

ST ENGINEERING could find itself among the preferred picks of 2020, with a strong orderbook providing visibility for the next few years and contributions from recent acquisitions expected to bolster earnings.

As at Sept 30, 2019, the group's orderbook stood at a record S$15.9 billion, while it brought in nearly S$6.5 billion worth of fresh orders in the first three quarters of 2019.

"This...holds scope for strong topline growth over the next two years," said UOB Kay Hian analyst K Ajith, noting that orderbook revenue typically accounts for 60 per cent of topline. "Near-term earnings …