Shyon
01-26 10:51
My stock in focus today is $ST Engineering(S63.SI)$ after news that its Commercial Aerospace business secured a five-year nacelle MRO agreement with LOT Polish Airlines for 15 Boeing 787 Dreamliners. While not a headline-grabbing mega deal, the contract’s length and fleet coverage provide solid earnings visibility.

What’s more interesting is the predictive maintenance and structured refurbishment programme. This shifts nacelle support from reactive fixes to data-driven lifecycle planning, which typically leads to higher switching costs, stickier customer relationships, and better margin stability over time.

From an investment perspective, this reinforces S63’s strength in recurring aerospace services revenue, particularly on long-life wide-body platforms like the B787. It may not be a short-term catalyst, but it fits well into the steady, compounding growth story that long-term investors tend to appreciate.

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Comments

  • snixxx
    01-27 09:49
    snixxx
    Solid contract win! Predictive maintenance lifts margins steadily. [开心]
    • Shyon
      同意你的观点!
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