With countries opening up and air travel made possible once again, the aerospace industry has made a significant comeback and ST Engineering has not been left out. Here’s why ST Engineering could be a profitable investment to look into.
According to their financial report of the first quarter of 2022, ST Engineering saw a significant boost of $2b in revenue, a 13% increase from $1.8b in Q1 2021. Commercial aerospace contributed the most to revenue growth with a 22% increase in revenue, with the reopening of borders and orders for nacelles (enclosed part of an airplane containing the engine), amongst others.
3 weeks ago, ST Engineering announced a collaboration with Mobile Aerospace Engineering and United Airlines, Inc (United), which aims to have ST Engineering see part of United’s long-term airframe heavy maintenance needs move to the Pensacola International Airport in Florida, U.S. There, ST Engineering will be operating a Maintenance, Repair & Overhaul (MRO) complex which is estimated to be completed by end 2024. This overseas partnership could see long-term benefits for the company with possible increase in global investors.
Additionally, ST Engineering announced last week a dividend policy to declare dividends every quarter instead of twice a year previously. The Board declared an interim on-tier tax exempt dividend for the first quarter ended 31 March 2022 of 4 cents for every ordinary share held.
Considering the profit that investors of ST Engineering stand to gain from the collaborations with overseas organisations, coupled with the financial growth of the company in not only aerospace, but cybersecurity and satellite communications as well, ST Engineering could be a company worth looking into for long-term investments over the next few years.
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