STE

STE: Announced that its aerospace arm, ST Aerospace, has secured new contracts worth about S$430m in 2Q13. This includes the exclusive component Maintenance-By-the-Hour contract worth $32.25m awarded by Spring Airlines Japan, and the five-year Multi-crew Pilot Licence training contract from Qatar Airways announced in June 2013. In the VIP cabin reconfiguration business, ST Aerospace secured three deals involving Boeing Business Jets (BBJ): a cabin design contract in Eastern Europe, a 12-year maintenance check and interior refurbishment project on a Boeing 737 belonging to a returning Middle Eastern customer, and a maintenance and interior modification contract awarded by a US customer. The magnitude of the contract wins is in line with our expectations. OCBC maintain fair value estimate of $3.97 and HOLD rating on STE.