ST Engrg

ST Engrg: US non-deal roadshow (NDR) takeaways. Deutsche notes US investor interest focused on the co’s operational resilience, balance sheet strength (backed by AAA-rating by Moody’s and S&P) and growth opportunities. Says group operations appear steady due to sizeable exposure to defence (40% of sales) and govt contracts (20-30%). Adds, the record high orderbook ($12.2b as at 1Q12) provides long-term visibility and accounts for 60-70% of sales each yr. Sees valuations as attractive, with the stock trading at 16x FY12e P/E and offering 6% div yield. Notes STE share price tends to outperform the STI in times of mkt volatility. Reiterates Buy with TP $3.35.