Singapore Technologies Engineering Ltd’s 2016 Annual Report: 18 Key Numbers Investors Should Know

Singapore Technologies Engineering Ltd (SGX: S63) released its annual report earlier this year.

The engineering conglomerate, or ST Engineering for short, divides its businesses into segments: aerospace, electronics, land systems, and marine. We can learn more from its annual report. With that in mind, here are 20 key figures investors should know:

1. ST Engineering’s history can be traced back 50 years. In 1967, Chartered Industries was formed as an ammunition manufacturer and military platforms service provider. Two decades ago, in 1997, a group of engineering-related companies came together as the ST Engineering we know today.

2. ST Engineering recorded $6.68 billion in revenues for 2016. Around 65% of its sales comes from the commercial sector while the other 35% is from defence.

3. The conglomerate may be listed in Singapore, but it makes a fair amount of its revenue from overseas. For 2016, 59% of sales came from Asian-based customers, 25% from US, 9% from Europe and 7% from other countries.     

4. From a business segment perspective, the aerospace business is the largest with a 37% contribution to sales. Electronics is in second place with 28% of revenue. Land systems and marine pitch in 19% and 13% of sales, respectively.

5. The importance of the aerospace and electronics businesses is highlighted by their outsized contribution to net profit. The former accounted for 48% of 2016 net profits, while the latter is responsible for 36%.

6. Singapore’s Temasek Holdings (Private) Limited is its largest shareholder, as of 27 February 2017. The investment fund has a deemed interest of 50.99%.

7. Each ordinary share has one vote. But there is one special share that is issued to Singapore’s Minister for Finance. According to the annual report, the special share “carries the right to approve any resolution to be passed by the Company, either in general meeting or by its Board of Directors, on certain matters specified in the Company’s Constitution”.  

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.