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Joelton
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24-Oct-2025 11:38

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ST Engineering bags new contracts worth S$4.9 billion in Q3 2025

For the nine months ended Sep 30, the company&rsquo s total contract wins amount to S$14 billion

[SINGAPORE] ST Engineering : S63 +0.47% on Thursday (Oct 23) announced that it secured S$4.9 billion in new contracts in the third quarter of 2025.

The sum comprises S$1.4 billion from the commercial aerospace segment, S$2.4 billion from the defence and public security arm, and S$1.1 billion from the urban solutions and satcom segment.

For the nine months ended Sep 30, ST Engineering&rsquo s total contract wins amounted to S$14 billion.

The commercial aerospace segment clinched several new contracts across its maintenance, repair and overhaul (MRO) as well as its aerostructures and systems sub-units.

The MRO contracts include a multi-year agreement for Airbus A380 airframe heavy maintenance and cabin modification with a European airline.

On the aerostructures and systems front, the demand for engine nacelles and composite floor panels remained robust, supported by increased new aircraft production, while the freighter conversion business received an A330 passenger-to-freighter order.

Separately, the defence and public security segment won new orders across its business lines.

For instance, the digital systems and cyber business was awarded contracts to design and produce Earth observation satellite systems for an international customer, as well as to provide artificial intelligence-powered 5G solutions for local and international enterprise customers.

Other contracts secured included those related to next-generation broadband communications systems, as well as commercial satellite imagery and analytics services.

The land systems business secured its first 155 mm ammunition orders from customers in South America, in addition to new orders from Eastern Europe, and repeat orders for 40 mm ammunition from international clients.

The marine segment won a contract with Siemens Energy to build and deliver a barge-mounted power plant in the Dominican Republic.

ST Engineering&rsquo s urban solutions business landed contracts to provide rail electronics solutions for the Thomson-East Coast Line extension and long-term service support for its rail sub-systems on the Jurong Region Line, among others.

Its smart utilities and infrastructure business was contracted to deploy its Doctor-on-Call healthcare tech solution for hospitals in Hong Kong, and to deliver its integrated smart security management solution to customers in Singapore, including a tertiary institution.

The satcom business received ground segment infrastructure contracts from satellite service providers in Asia, Europe, the Middle East and the US, among other entities.

ST Engineering does not expect the contracts to have a material impact on the group&rsquo s consolidated net tangible assets per share and earnings per share for the current financial year.

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MrBear12
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24-Oct-2025 08:59

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https://www.navalnews.com/naval-news/2025/10/video-st-engineering-launches-first-mrcv-for-singapore/ Hanwha Ocean Search Search... Home » Video: ST Engineering Launches First MRCV for Singapore Indo Pacific 2025 Video: ST Engineering Launches First MRCV for Singapore Published on 21/10/2025 By Naval News Staff In News Share Singapore?s shipbuilder ST Engineering today launched the first Multi-Role Combat Vessel (MRCV), Victory, for the Republic of Singapore Navy. The future Victory-class MRCVs will replace the six Victory-class corvettes currently in service with the Republic of Singapore Navy, with a greater design emphasis on the MRCVs? capabilities as ?motherships? for autonomous and uncrewed systems over conventional weapon systems.

MrBear12 ( Date: 24-Oct-2025 07:54) Posted:

Let's keep it simple, If we don't need the money, just keep and no need to bother about it. Those who want a great company, buy and keep like your valuables. Let it grow into a huge and strong tree that will provide shade for generations. Trade in generations

sfw2124 ( Date: 23-Oct-2025 23:29) Posted:

ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

Current Close (Oct 23, 2025): S$8.48
Latest Announcement: S$4.9B Q3 contract wins (+S$14B YTD 9M total)
Implied Momentum: Strong upside catalyst emerging

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

Target Price: S$8.80-8.90
Trigger: Intraday rally within 1-3 trading sessions
Profit Taken: 4-5% gain (S$0.32-0.42)
Action: Sell 30% of position (trim profits early)

Rationale:

Lock in immediate gains from Q3 contract news
De-risk position before profit-taking by institutional holders
Allow 70% of position to continue riding longer-term momentum

Probability of Hitting: 75% (likely within 1 week)

TIER 2: MODERATE EXIT (Balanced Approach)

Target Price: S$9.10-9.30
Trigger: 2-3 weeks post-announcement (analyst upgrades kick in)
Profit Taken: 7-10% gain (S$0.60-0.82)
Action: Sell 50% of remaining position (another 35% of original)

Rationale:

Allows momentum to develop as analysts digest contract wins
Q3 results (Nov 18) will trigger additional buying
Analyst price target upgrades typically follow good contract news
Still maintains core position for Nov-Feb upside

Probability of Hitting: 80% (likely by early Nov)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

Target Price: S$9.50-9.80
Trigger: After Q3 2025 results (Nov 18) if earnings exceed expectations
Profit Taken: 12-15% gain (S$1.00-1.32)
Action: Sell final 30% of position (last quarter trimmed)

Rationale:

Maximum upside capture from full fundamental + technical re-rating
Q3 results will provide earnings visibility for 2026
Contract wins will be reflected in profit/EPS guidance
Nov 18 results catalyst typically drives strong institutional flows

Probability of Hitting: 65% (achievable but requires patience)

CONSOLIDATED EXIT STRATEGY SUMMARY

Exit Tier	Price Target	Timing	% Sold	Cumulative % Sold	Gain	Action
Tier 1 (Conservative)	S$8.80-8.90	1-3 trading days	30%	30%	+4-5%	SELL 1/3
Tier 2 (Moderate)	S$9.10-9.30	2-3 weeks	35%	65%	+7-10%	SELL 1/2
Tier 3 (Aggressive)	S$9.50-9.80	After Nov 18 results	35%	100%	+12-15%	SELL FINAL 1/3
If holds above S$9.80	S$10.00+	Dec 2025+	&mdash	&mdash	+18%+	HOLD (New thesis)

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

Order Book Dynamics:

Current backlog: S$31.2B
9M 2025 wins: S$14B (annualize to S$18.7B if Q4 matches)
New order backlog trajectory: S$33-35B by year-end
This translates to 3-year visibility (vs current 2.6 years)

Market Valuation Impact:

S$14B new orders in 9 months = exceptional pace
Analyst consensus expected to raise 2026E EPS by 8-12%
Each 1% EPS upgrade typically adds 1-1.5% P/E multiple expansion
Conservative target: Current 30.6x P/E &rarr 31.5x P/E by Nov results

2. Segment Breakdown Showing Broad-Based Strength

Defence & Public Security: S$2.4B (49% of Q3 wins) 🔴

First South America 155mm ammunition orders (new market)
AI/5G/cybersecurity digital solutions gaining traction
Satellite/data center contracts expanding
Implication: High-margin defense digital mix improving

Commercial Aerospace: S$1.4B (29% of Q3 wins) ✈ ️

Airbus A380 multi-year heavy maintenance = recurring revenue
Engine MRO " continued apace" = sustained demand
A330 freighter conversion orders (supply chain normalizing)
Implication: MRO margin sustainability improving 2026

Urban Solutions: S$1.1B (22% of Q3 wins) 🏙 ️

Thomson-East Coast Line Extension (Singapore infrastructure)
U.S. tolling contracts expanding
Healthcare ICT solutions (Doctor-on-Call) winning
Implication: Urban solutions stabilizing (previously 0% growth in H1)

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

Quote from Oct 23 announcement:

" These contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year."

Translation:

S$4.9B Q3 wins won' t impact FY2025 EPS materially
Most revenue recognition is FY2026+ (multi-year contracts)
But provides evidence of demand strength for forward guidance
Nov 18 results will likely raise FY2026E guidance by 10-15%

Market Reaction: Positive, as forward visibility improves (even if current year unaffected) DYODD

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MrBear12
Supreme

24-Oct-2025 07:54

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sfw2124 ( Date: 23-Oct-2025 23:29) Posted:

ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

Current Close (Oct 23, 2025): S$8.48
Latest Announcement: S$4.9B Q3 contract wins (+S$14B YTD 9M total)
Implied Momentum: Strong upside catalyst emerging

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

Target Price: S$8.80-8.90
Trigger: Intraday rally within 1-3 trading sessions
Profit Taken: 4-5% gain (S$0.32-0.42)
Action: Sell 30% of position (trim profits early)

Rationale:

Lock in immediate gains from Q3 contract news
De-risk position before profit-taking by institutional holders
Allow 70% of position to continue riding longer-term momentum

Probability of Hitting: 75% (likely within 1 week)

TIER 2: MODERATE EXIT (Balanced Approach)

Allows momentum to develop as analysts digest contract wins
Q3 results (Nov 18) will trigger additional buying
Analyst price target upgrades typically follow good contract news
Still maintains core position for Nov-Feb upside

Probability of Hitting: 80% (likely by early Nov)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

Maximum upside capture from full fundamental + technical re-rating
Q3 results will provide earnings visibility for 2026
Contract wins will be reflected in profit/EPS guidance
Nov 18 results catalyst typically drives strong institutional flows

Probability of Hitting: 65% (achievable but requires patience)

CONSOLIDATED EXIT STRATEGY SUMMARY

Exit Tier	Price Target	Timing	% Sold	Cumulative % Sold	Gain	Action
Tier 1 (Conservative)	S$8.80-8.90	1-3 trading days	30%	30%	+4-5%	SELL 1/3
Tier 2 (Moderate)	S$9.10-9.30	2-3 weeks	35%	65%	+7-10%	SELL 1/2
Tier 3 (Aggressive)	S$9.50-9.80	After Nov 18 results	35%	100%	+12-15%	SELL FINAL 1/3
If holds above S$9.80	S$10.00+	Dec 2025+	&mdash	&mdash	+18%+	HOLD (New thesis)

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

Order Book Dynamics:

Current backlog: S$31.2B
9M 2025 wins: S$14B (annualize to S$18.7B if Q4 matches)
New order backlog trajectory: S$33-35B by year-end
This translates to 3-year visibility (vs current 2.6 years)

Market Valuation Impact:

S$14B new orders in 9 months = exceptional pace
Analyst consensus expected to raise 2026E EPS by 8-12%
Each 1% EPS upgrade typically adds 1-1.5% P/E multiple expansion
Conservative target: Current 30.6x P/E &rarr 31.5x P/E by Nov results

2. Segment Breakdown Showing Broad-Based Strength

Defence & Public Security: S$2.4B (49% of Q3 wins) 🔴

First South America 155mm ammunition orders (new market)
AI/5G/cybersecurity digital solutions gaining traction
Satellite/data center contracts expanding
Implication: High-margin defense digital mix improving

Commercial Aerospace: S$1.4B (29% of Q3 wins) ✈ ️

Airbus A380 multi-year heavy maintenance = recurring revenue
Engine MRO " continued apace" = sustained demand
A330 freighter conversion orders (supply chain normalizing)
Implication: MRO margin sustainability improving 2026

Urban Solutions: S$1.1B (22% of Q3 wins) 🏙 ️

Thomson-East Coast Line Extension (Singapore infrastructure)
U.S. tolling contracts expanding
Healthcare ICT solutions (Doctor-on-Call) winning
Implication: Urban solutions stabilizing (previously 0% growth in H1)

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

Quote from Oct 23 announcement:

" These contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year."

Translation:

S$4.9B Q3 wins won' t impact FY2025 EPS materially
Most revenue recognition is FY2026+ (multi-year contracts)
But provides evidence of demand strength for forward guidance
Nov 18 results will likely raise FY2026E guidance by 10-15%

Market Reaction: Positive, as forward visibility improves (even if current year unaffected) DYODD

JurongW ( Date: 23-Oct-2025 18:31) Posted:

3Q contract win

https://links.sgx.com/1.0.0/corporate-announcements/R6WJJYKPEV8KXDPJ/864679_251023_SGX_ST%20Engineering%20Announces%20Strong%20Contract%20Wins%20of%20%244.9b%20for%203Q2025.pdf

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sfw2124
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23-Oct-2025 23:29

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ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

Current Close (Oct 23, 2025): S$8.48
Latest Announcement: S$4.9B Q3 contract wins (+S$14B YTD 9M total)
Implied Momentum: Strong upside catalyst emerging

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

Target Price: S$8.80-8.90
Trigger: Intraday rally within 1-3 trading sessions
Profit Taken: 4-5% gain (S$0.32-0.42)
Action: Sell 30% of position (trim profits early)

Rationale:

Lock in immediate gains from Q3 contract news
De-risk position before profit-taking by institutional holders
Allow 70% of position to continue riding longer-term momentum

Probability of Hitting: 75% (likely within 1 week)

TIER 2: MODERATE EXIT (Balanced Approach)

Allows momentum to develop as analysts digest contract wins
Q3 results (Nov 18) will trigger additional buying
Analyst price target upgrades typically follow good contract news
Still maintains core position for Nov-Feb upside

Probability of Hitting: 80% (likely by early Nov)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

Maximum upside capture from full fundamental + technical re-rating
Q3 results will provide earnings visibility for 2026
Contract wins will be reflected in profit/EPS guidance
Nov 18 results catalyst typically drives strong institutional flows

Probability of Hitting: 65% (achievable but requires patience)

CONSOLIDATED EXIT STRATEGY SUMMARY

Exit Tier	Price Target	Timing	% Sold	Cumulative % Sold	Gain	Action
Tier 1 (Conservative)	S$8.80-8.90	1-3 trading days	30%	30%	+4-5%	SELL 1/3
Tier 2 (Moderate)	S$9.10-9.30	2-3 weeks	35%	65%	+7-10%	SELL 1/2
Tier 3 (Aggressive)	S$9.50-9.80	After Nov 18 results	35%	100%	+12-15%	SELL FINAL 1/3
If holds above S$9.80	S$10.00+	Dec 2025+	&mdash	&mdash	+18%+	HOLD (New thesis)

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

Order Book Dynamics:

Current backlog: S$31.2B
9M 2025 wins: S$14B (annualize to S$18.7B if Q4 matches)
New order backlog trajectory: S$33-35B by year-end
This translates to 3-year visibility (vs current 2.6 years)

Market Valuation Impact:

S$14B new orders in 9 months = exceptional pace
Analyst consensus expected to raise 2026E EPS by 8-12%
Each 1% EPS upgrade typically adds 1-1.5% P/E multiple expansion
Conservative target: Current 30.6x P/E &rarr 31.5x P/E by Nov results

2. Segment Breakdown Showing Broad-Based Strength

Defence & Public Security: S$2.4B (49% of Q3 wins) 🔴

First South America 155mm ammunition orders (new market)
AI/5G/cybersecurity digital solutions gaining traction
Satellite/data center contracts expanding
Implication: High-margin defense digital mix improving

Commercial Aerospace: S$1.4B (29% of Q3 wins) ✈ ️

Airbus A380 multi-year heavy maintenance = recurring revenue
Engine MRO " continued apace" = sustained demand
A330 freighter conversion orders (supply chain normalizing)
Implication: MRO margin sustainability improving 2026

Urban Solutions: S$1.1B (22% of Q3 wins) 🏙 ️

Thomson-East Coast Line Extension (Singapore infrastructure)
U.S. tolling contracts expanding
Healthcare ICT solutions (Doctor-on-Call) winning
Implication: Urban solutions stabilizing (previously 0% growth in H1)

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

Quote from Oct 23 announcement:

" These contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year."

Translation:

S$4.9B Q3 wins won' t impact FY2025 EPS materially
Most revenue recognition is FY2026+ (multi-year contracts)
But provides evidence of demand strength for forward guidance
Nov 18 results will likely raise FY2026E guidance by 10-15%

Market Reaction: Positive, as forward visibility improves (even if current year unaffected) DYODD

JurongW ( Date: 23-Oct-2025 18:31) Posted:

3Q contract win

https://links.sgx.com/1.0.0/corporate-announcements/R6WJJYKPEV8KXDPJ/864679_251023_SGX_ST%20Engineering%20Announces%20Strong%20Contract%20Wins%20of%20%244.9b%20for%203Q2025.pdf

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JurongW
Elite

23-Oct-2025 18:31

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3Q contract win

https://links.sgx.com/1.0.0/corporate-announcements/R6WJJYKPEV8KXDPJ/864679_251023_SGX_ST%20Engineering%20Announces%20Strong%20Contract%20Wins%20of%20%244.9b%20for%203Q2025.pdf

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MrBear12
Supreme

21-Oct-2025 23:03

MrBear12 About Contact Quote this Post! Style: Combined Mood:

Yells: "Cast all our anxieties on Jesus for He cares for us"

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AI is so complex!

Let's simply begin with BI

Buy on weakness, that is relative. So if now is about 10 percent from highs, it's a correction. An opportunity to buy.

Don't wait for a bear market. That is 20 per cent drop and not looking likely as markets hit record highs in US and elsewhere.

Expect improving results in the coming years. That means improving dividends and share of profits

Trade with BI

sfw2124 ( Date: 21-Oct-2025 22:11) Posted:

Assessment and Evaluation by Perplexity AI but DYODD

sfw2124 ( Date: 21-Oct-2025 22:09) Posted:

EXECUTIVE SUMMARY

Current Price: S$8.25 (as of Oct 21, 2025)
Q3 2025 Results Date: November 18, 2025
Institutional Recommendation: HOLD with POSITIVE BIAS
12-Month Target: S$9.00-9.50 (9-15% upside)
Probability of Better 3Q2025 Results: 75%
Probability of Better FY2025 Results: 85%

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

Revenue & Profitability (1H2025 vs 1H2024):

Revenue: S$5.92B (+7.2% YoY)
EBITDA: S$871M (+10.8% YoY)
EBIT: S$602M (+15.2% YoY)
Net Profit: S$403M (+19.7% YoY)
EPS: S$0.1293 (+19.7% YoY)

Key Observations:
✅ Profit growth outpacing revenue (20% vs 7%) = margin expansion
✅ Operating margin: 10.2% (vs 9.5% in 1H2024)
✅ 1H2025 represents 48% of FY2025 consensus &rarr typically lighter half
✅ Forex headwind: USD weakness reduced revenue by ~1%, minimal net profit impact

B. Segment Performance - Broad-Based Strength

1. Commercial Aerospace (40% of revenue):

Revenue: S$2.35B (+5% YoY)
EBIT: S$223M (+18% YoY, margin 9.5%)
Drivers: Engine MRO demand surge, nacelle production ramp-up
Headwind: P2F (passenger-to-freighter) conversion slowdown
Tariff Impact: S$34M revenue deferred from Q2&rarr H2 (vs initial S$40M/month fear)

2. Defence & Public Security (45% of revenue):

Revenue: S$2.65B (+12% YoY)
EBIT: S$367M (+13% YoY, margin 13.8% - highest since 1H2023)
Drivers: International ammunition orders (40mm, 155mm), military aircraft MRO, cybersecurity
Geographic: Middle East, Europe, North Africa defense spending boom

3. Urban Solutions & Satcom (15% of revenue):

Revenue: S$921M (flat YoY)
EBIT: S$12M (vs S$9M prior year)
Mixed: Urban solutions +3%, Satcom -12% (contract timing)
Pipeline: Thomson-East Coast Line Extension (4 MRT stations), Saudi Arabia satcom contracts

C. Order Book - Record Visibility

As of June 30, 2025:

Total Order Book: S$31.2B (+9.5% YoY from S$28.5B)
2H2025 Delivery: S$5.0B scheduled for remaining 6 months
1H2025 Contract Wins: S$9.1B (vs S$6.1B in 1H2024, +49%)

Q2 2025 Breakdown (S$4.7B total):

Commercial Aerospace: S$1.5B (LEAP-1A engines, A330P2F conversions)
Defence: S$1.5B (ammunition, GPU data centers, AI command systems)
Urban Solutions: S$1.7B (Taichung MRT, US tolling, satcom infrastructure)

Order Book Quality:
✅ 70% backlog from defense/government = long-term, stable contracts
✅ Visibility: Current S$31.2B = 2.6 years revenue at FY2024 run-rate
✅ Momentum: S$4.7B Q2 wins (+54% YoY) accelerating into H2

D. Balance Sheet & Capital Allocation

Financial Position (June 30, 2025):

Cash & Equivalents: S$354M
Net Debt: Reduced via S$450M divestment proceeds (LeeBoy, SPTel 50% stake)
Interest Savings: ~S$15M annual from debt repayment

Dividend Policy (Enhanced March 2025):

2Q2025 Interim: S$0.04/share (paid Sept 5, 2025)
Commitment: DPS to grow in tandem with net profit
FY2025 Projection: S$0.17 total (vs S$0.16 in FY2024), 2.1% yield
II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

Key Levels:
- All-Time High: S$9.07 (August 2025)
- Current Price: S$8.25 (Oct 21, 2025)
- Support Zones: S$8.00 (psychological), S$7.80 (50-day EMA), S$7.50 (200-day EMA)
- Resistance: S$8.60 (recent high), S$9.00 (institutional target cluster)
Indicators Analysis:

1. RSI (Relative Strength Index):
- Current: ~35-40 (neutral to slightly oversold)
- Interpretation: Relief from overbought > 70 levels in Aug-Sep
- Signal: Room for upward move without hitting resistance
2. MACD (Moving Average Convergence Divergence):
- Status: Bearish crossover in progress (signal line crossing below MACD)
- Histogram: Negative but narrowing
- Interpretation: Short-term consolidation, not a trend reversal
3. Aroon Indicator:
- Aroon Up: Declining from 100 &rarr ~50
- Aroon Down: Rising to ~60
- Interpretation: Ranging/consolidation phase after strong uptrend
- Forecast: Awaiting 3Q results catalyst to break out
4. Volume Analysis:
- Pattern: Declining volume during Oct pullback = lack of conviction in selling
- Positive: No panic selling despite -9% correction from highs
- Institutional Activity: S$10.7B average daily volume = strong liquidity
Chart Verdict:
Healthy consolidation at S$8.00-8.50 after 120% rally (Mar&rarr Aug 2025). Technical setup favors upside breakout on positive 3Q earnings catalyst. No signs of distribution or trend breakdown.

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

Consensus Estimates:
- 3Q2025 Revenue: S$3.0-3.1B (+10-12% YoY)
- 3Q2025 Net Profit: S$210-220M (+15-18% YoY)
- 9M2025 Cumulative: S$8.9-9.0B revenue, S$613-623M net profit
Probability Drivers - POSITIVE:

1. Contracted Revenue Visibility (HIGH CONFIDENCE):
- S$5.0B orderbook scheduled for 2H2025 delivery
- Math: S$5.0B ÷ 6 months = S$833M/month average
- Q3 alone (July-Sept) = S$2.5B minimum revenue recognition
- Verdict: Revenue beat likely (consensus S$3.0B vs S$2.5B floor)
2. Defense Segment Momentum (HIGH CONFIDENCE):
- S$1.5B Q2 defense wins provide 3Q revenue
- Middle East conflicts (Israel-Hamas, Red Sea tensions) sustaining ammunition demand
- Military aircraft MRO: European/NATO rearmament boosting Q3 pipeline
3. Commercial Aerospace Recovery (MODERATE CONFIDENCE):
- Tariff-deferred S$34M from Q2 now flowing into Q3
- LEAP-1A engine contracts (5-year Air Cairo deal) ramping up
- Engine MRO: Supply chain normalization improving turnaround times
4. Margin Expansion Trajectory (HIGH CONFIDENCE):
- 1H2025 operating margin 10.2% (vs 9.5% historical)
- Defense digital business growing +14% (highest margin subsegment)
- Cost discipline + favorable product mix = sustained margins
Probability Risks - NEGATIVE:

1. Urban Solutions Lumpiness (MODERATE RISK):
- Satcom revenue -12% in 1H due to contract timing
- Rail projects (Thomson-East Coast Line) in early execution phase = minimal Q3 contribution
2. Forex Volatility (LOW RISK):
- USD/SGD ~1.32-1.34 range in Q3 = mild translation headwind
- Mitigation: Natural hedges via global cost base
3. China Economic Slowdown (LOW RISK):
- Minimal China revenue exposure (< 10% of group)
- Insulated: Defense, aerospace MRO, Singapore-based contracts
Verdict: 75% probability of 3Q2025 beat based on:
- S$5.0B contracted delivery pipeline
- Defense momentum + aerospace tariff recovery
- Margin expansion sustainability
  B. FY2025 Full-Year Probability: 85%
  
  Consensus Estimates (Bloomberg/S& P):
  - FY2025 Revenue: S$12.3B (+9.2% YoY)
  - FY2025 Net Profit: S$843M (+20% YoY)
  - FY2025 EPS: S$0.27 (+20% YoY)
  Full-Year Upside Catalysts:
  
  1. 2H2025 Seasonality (HIGH CONFIDENCE):
  - Historical Pattern: 2H typically contributes 52-54% of annual revenue
  - 1H2025: Already at S$5.92B (48% of S$12.3B target)
  - Math: 2H needs S$6.38B &rarr achievable with S$5.0B contracted + S$1.38B organic
  2. Order Book Conversion Acceleration (HIGH CONFIDENCE):
  - S$31.2B backlog + S$9.1B 1H wins = massive pipeline
  - Q4 Push: Typical year-end rush to deliver against KPIs
  - Defense clients (governments) spending FY budgets before year-end
  3. Portfolio Rationalization Benefits (MODERATE CONFIDENCE):
  - LeeBoy + SPTel divestments = S$450M proceeds for debt reduction
  - S$15M annual interest savings flowing into net profit
  - Focus on core high-margin defense/aerospace
  4. 5-Year Strategic Targets (LONG-TERM CONFIDENCE):
  - 2025 Investor Day announced revenue CAGR target > 2.5x global GDP
  - Net profit CAGR to exceed revenue CAGR by up to 5 percentage points
  - FY2025 as baseline year for 2025-2029 targets &rarr management incentivized to deliver
  Full-Year Downside Risks:
  
  1. Tariff Policy Uncertainty (MODERATE RISK):
  - US-China trade war escalation could impact aerospace supply chains
  - Mitigation: Already absorbed S$34M Q2 impact, no further guidance revision
  2. Interest Rate Environment (LOW RISK):
  - If rates stay elevated, project financing costs could compress margins
  - Mitigation: Strong FCF generation + debt paydown offsetting
  Verdict: 85% probability of FY2025 beat based on:
  - 2H seasonality + S$5.0B contracted pipeline
  - Margin expansion trajectory intact
  - Management track record + strategic targets at stake

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sfw2124
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21-Oct-2025 22:11

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Assessment and Evaluation by Perplexity AI but DYODD

sfw2124 ( Date: 21-Oct-2025 22:09) Posted:

EXECUTIVE SUMMARY

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

Revenue & Profitability (1H2025 vs 1H2024):

Revenue: S$5.92B (+7.2% YoY)
EBITDA: S$871M (+10.8% YoY)
EBIT: S$602M (+15.2% YoY)
Net Profit: S$403M (+19.7% YoY)
EPS: S$0.1293 (+19.7% YoY)

B. Segment Performance - Broad-Based Strength

1. Commercial Aerospace (40% of revenue):

Revenue: S$2.35B (+5% YoY)
EBIT: S$223M (+18% YoY, margin 9.5%)
Drivers: Engine MRO demand surge, nacelle production ramp-up
Headwind: P2F (passenger-to-freighter) conversion slowdown
Tariff Impact: S$34M revenue deferred from Q2&rarr H2 (vs initial S$40M/month fear)

2. Defence & Public Security (45% of revenue):

Revenue: S$2.65B (+12% YoY)
EBIT: S$367M (+13% YoY, margin 13.8% - highest since 1H2023)
Drivers: International ammunition orders (40mm, 155mm), military aircraft MRO, cybersecurity
Geographic: Middle East, Europe, North Africa defense spending boom

3. Urban Solutions & Satcom (15% of revenue):

Revenue: S$921M (flat YoY)
EBIT: S$12M (vs S$9M prior year)
Mixed: Urban solutions +3%, Satcom -12% (contract timing)
Pipeline: Thomson-East Coast Line Extension (4 MRT stations), Saudi Arabia satcom contracts

C. Order Book - Record Visibility

As of June 30, 2025:

Total Order Book: S$31.2B (+9.5% YoY from S$28.5B)
2H2025 Delivery: S$5.0B scheduled for remaining 6 months
1H2025 Contract Wins: S$9.1B (vs S$6.1B in 1H2024, +49%)

Q2 2025 Breakdown (S$4.7B total):

Commercial Aerospace: S$1.5B (LEAP-1A engines, A330P2F conversions)
Defence: S$1.5B (ammunition, GPU data centers, AI command systems)
Urban Solutions: S$1.7B (Taichung MRT, US tolling, satcom infrastructure)

D. Balance Sheet & Capital Allocation

Financial Position (June 30, 2025):

Cash & Equivalents: S$354M
Net Debt: Reduced via S$450M divestment proceeds (LeeBoy, SPTel 50% stake)
Interest Savings: ~S$15M annual from debt repayment

Dividend Policy (Enhanced March 2025):

2Q2025 Interim: S$0.04/share (paid Sept 5, 2025)
Commitment: DPS to grow in tandem with net profit
FY2025 Projection: S$0.17 total (vs S$0.16 in FY2024), 2.1% yield
II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

Key Levels:
- All-Time High: S$9.07 (August 2025)
- Current Price: S$8.25 (Oct 21, 2025)
- Support Zones: S$8.00 (psychological), S$7.80 (50-day EMA), S$7.50 (200-day EMA)
- Resistance: S$8.60 (recent high), S$9.00 (institutional target cluster)
Indicators Analysis:

1. RSI (Relative Strength Index):
- Current: ~35-40 (neutral to slightly oversold)
- Interpretation: Relief from overbought > 70 levels in Aug-Sep
- Signal: Room for upward move without hitting resistance
2. MACD (Moving Average Convergence Divergence):
- Status: Bearish crossover in progress (signal line crossing below MACD)
- Histogram: Negative but narrowing
- Interpretation: Short-term consolidation, not a trend reversal
3. Aroon Indicator:
- Aroon Up: Declining from 100 &rarr ~50
- Aroon Down: Rising to ~60
- Interpretation: Ranging/consolidation phase after strong uptrend
- Forecast: Awaiting 3Q results catalyst to break out
4. Volume Analysis:
- Pattern: Declining volume during Oct pullback = lack of conviction in selling
- Positive: No panic selling despite -9% correction from highs
- Institutional Activity: S$10.7B average daily volume = strong liquidity
Chart Verdict:
Healthy consolidation at S$8.00-8.50 after 120% rally (Mar&rarr Aug 2025). Technical setup favors upside breakout on positive 3Q earnings catalyst. No signs of distribution or trend breakdown.

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

Consensus Estimates:
- 3Q2025 Revenue: S$3.0-3.1B (+10-12% YoY)
- 3Q2025 Net Profit: S$210-220M (+15-18% YoY)
- 9M2025 Cumulative: S$8.9-9.0B revenue, S$613-623M net profit
Probability Drivers - POSITIVE:

1. Contracted Revenue Visibility (HIGH CONFIDENCE):
- S$5.0B orderbook scheduled for 2H2025 delivery
- Math: S$5.0B ÷ 6 months = S$833M/month average
- Q3 alone (July-Sept) = S$2.5B minimum revenue recognition
- Verdict: Revenue beat likely (consensus S$3.0B vs S$2.5B floor)
2. Defense Segment Momentum (HIGH CONFIDENCE):
- S$1.5B Q2 defense wins provide 3Q revenue
- Middle East conflicts (Israel-Hamas, Red Sea tensions) sustaining ammunition demand
- Military aircraft MRO: European/NATO rearmament boosting Q3 pipeline
3. Commercial Aerospace Recovery (MODERATE CONFIDENCE):
- Tariff-deferred S$34M from Q2 now flowing into Q3
- LEAP-1A engine contracts (5-year Air Cairo deal) ramping up
- Engine MRO: Supply chain normalization improving turnaround times
4. Margin Expansion Trajectory (HIGH CONFIDENCE):
- 1H2025 operating margin 10.2% (vs 9.5% historical)
- Defense digital business growing +14% (highest margin subsegment)
- Cost discipline + favorable product mix = sustained margins
Probability Risks - NEGATIVE:

1. Urban Solutions Lumpiness (MODERATE RISK):
- Satcom revenue -12% in 1H due to contract timing
- Rail projects (Thomson-East Coast Line) in early execution phase = minimal Q3 contribution
2. Forex Volatility (LOW RISK):
- USD/SGD ~1.32-1.34 range in Q3 = mild translation headwind
- Mitigation: Natural hedges via global cost base
3. China Economic Slowdown (LOW RISK):
- Minimal China revenue exposure (< 10% of group)
- Insulated: Defense, aerospace MRO, Singapore-based contracts
Verdict: 75% probability of 3Q2025 beat based on:
- S$5.0B contracted delivery pipeline
- Defense momentum + aerospace tariff recovery
- Margin expansion sustainability
  B. FY2025 Full-Year Probability: 85%
  
  Consensus Estimates (Bloomberg/S& P):
  - FY2025 Revenue: S$12.3B (+9.2% YoY)
  - FY2025 Net Profit: S$843M (+20% YoY)
  - FY2025 EPS: S$0.27 (+20% YoY)
  Full-Year Upside Catalysts:
  
  1. 2H2025 Seasonality (HIGH CONFIDENCE):
  - Historical Pattern: 2H typically contributes 52-54% of annual revenue
  - 1H2025: Already at S$5.92B (48% of S$12.3B target)
  - Math: 2H needs S$6.38B &rarr achievable with S$5.0B contracted + S$1.38B organic
  2. Order Book Conversion Acceleration (HIGH CONFIDENCE):
  - S$31.2B backlog + S$9.1B 1H wins = massive pipeline
  - Q4 Push: Typical year-end rush to deliver against KPIs
  - Defense clients (governments) spending FY budgets before year-end
  3. Portfolio Rationalization Benefits (MODERATE CONFIDENCE):
  - LeeBoy + SPTel divestments = S$450M proceeds for debt reduction
  - S$15M annual interest savings flowing into net profit
  - Focus on core high-margin defense/aerospace
  4. 5-Year Strategic Targets (LONG-TERM CONFIDENCE):
  - 2025 Investor Day announced revenue CAGR target > 2.5x global GDP
  - Net profit CAGR to exceed revenue CAGR by up to 5 percentage points
  - FY2025 as baseline year for 2025-2029 targets &rarr management incentivized to deliver
  Full-Year Downside Risks:
  
  1. Tariff Policy Uncertainty (MODERATE RISK):
  - US-China trade war escalation could impact aerospace supply chains
  - Mitigation: Already absorbed S$34M Q2 impact, no further guidance revision
  2. Interest Rate Environment (LOW RISK):
  - If rates stay elevated, project financing costs could compress margins
  - Mitigation: Strong FCF generation + debt paydown offsetting
  Verdict: 85% probability of FY2025 beat based on:
  - 2H seasonality + S$5.0B contracted pipeline
  - Margin expansion trajectory intact
  - Management track record + strategic targets at stake

kepoh88 ( Date: 21-Oct-2025 13:56) Posted:

Miss the boat

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sfw2124
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21-Oct-2025 22:09

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EXECUTIVE SUMMARY

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

Revenue & Profitability (1H2025 vs 1H2024):

Revenue: S$5.92B (+7.2% YoY)
EBITDA: S$871M (+10.8% YoY)
EBIT: S$602M (+15.2% YoY)
Net Profit: S$403M (+19.7% YoY)
EPS: S$0.1293 (+19.7% YoY)

B. Segment Performance - Broad-Based Strength

1. Commercial Aerospace (40% of revenue):

Revenue: S$2.35B (+5% YoY)
EBIT: S$223M (+18% YoY, margin 9.5%)
Drivers: Engine MRO demand surge, nacelle production ramp-up
Headwind: P2F (passenger-to-freighter) conversion slowdown
Tariff Impact: S$34M revenue deferred from Q2&rarr H2 (vs initial S$40M/month fear)

2. Defence & Public Security (45% of revenue):

Revenue: S$2.65B (+12% YoY)
EBIT: S$367M (+13% YoY, margin 13.8% - highest since 1H2023)
Drivers: International ammunition orders (40mm, 155mm), military aircraft MRO, cybersecurity
Geographic: Middle East, Europe, North Africa defense spending boom

3. Urban Solutions & Satcom (15% of revenue):

Revenue: S$921M (flat YoY)
EBIT: S$12M (vs S$9M prior year)
Mixed: Urban solutions +3%, Satcom -12% (contract timing)
Pipeline: Thomson-East Coast Line Extension (4 MRT stations), Saudi Arabia satcom contracts

C. Order Book - Record Visibility

As of June 30, 2025:

Total Order Book: S$31.2B (+9.5% YoY from S$28.5B)
2H2025 Delivery: S$5.0B scheduled for remaining 6 months
1H2025 Contract Wins: S$9.1B (vs S$6.1B in 1H2024, +49%)

Q2 2025 Breakdown (S$4.7B total):

Commercial Aerospace: S$1.5B (LEAP-1A engines, A330P2F conversions)
Defence: S$1.5B (ammunition, GPU data centers, AI command systems)
Urban Solutions: S$1.7B (Taichung MRT, US tolling, satcom infrastructure)

D. Balance Sheet & Capital Allocation

Financial Position (June 30, 2025):

Cash & Equivalents: S$354M
Net Debt: Reduced via S$450M divestment proceeds (LeeBoy, SPTel 50% stake)
Interest Savings: ~S$15M annual from debt repayment

Dividend Policy (Enhanced March 2025):

2Q2025 Interim: S$0.04/share (paid Sept 5, 2025)
Commitment: DPS to grow in tandem with net profit
FY2025 Projection: S$0.17 total (vs S$0.16 in FY2024), 2.1% yield
II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

Key Levels:
- All-Time High: S$9.07 (August 2025)
- Current Price: S$8.25 (Oct 21, 2025)
- Support Zones: S$8.00 (psychological), S$7.80 (50-day EMA), S$7.50 (200-day EMA)
- Resistance: S$8.60 (recent high), S$9.00 (institutional target cluster)
Indicators Analysis:

1. RSI (Relative Strength Index):
- Current: ~35-40 (neutral to slightly oversold)
- Interpretation: Relief from overbought > 70 levels in Aug-Sep
- Signal: Room for upward move without hitting resistance
2. MACD (Moving Average Convergence Divergence):
- Status: Bearish crossover in progress (signal line crossing below MACD)
- Histogram: Negative but narrowing
- Interpretation: Short-term consolidation, not a trend reversal
3. Aroon Indicator:
- Aroon Up: Declining from 100 &rarr ~50
- Aroon Down: Rising to ~60
- Interpretation: Ranging/consolidation phase after strong uptrend
- Forecast: Awaiting 3Q results catalyst to break out
4. Volume Analysis:
- Pattern: Declining volume during Oct pullback = lack of conviction in selling
- Positive: No panic selling despite -9% correction from highs
- Institutional Activity: S$10.7B average daily volume = strong liquidity
Chart Verdict:
Healthy consolidation at S$8.00-8.50 after 120% rally (Mar&rarr Aug 2025). Technical setup favors upside breakout on positive 3Q earnings catalyst. No signs of distribution or trend breakdown.

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

Consensus Estimates:
- 3Q2025 Revenue: S$3.0-3.1B (+10-12% YoY)
- 3Q2025 Net Profit: S$210-220M (+15-18% YoY)
- 9M2025 Cumulative: S$8.9-9.0B revenue, S$613-623M net profit
Probability Drivers - POSITIVE:

1. Contracted Revenue Visibility (HIGH CONFIDENCE):
- S$5.0B orderbook scheduled for 2H2025 delivery
- Math: S$5.0B ÷ 6 months = S$833M/month average
- Q3 alone (July-Sept) = S$2.5B minimum revenue recognition
- Verdict: Revenue beat likely (consensus S$3.0B vs S$2.5B floor)
2. Defense Segment Momentum (HIGH CONFIDENCE):
- S$1.5B Q2 defense wins provide 3Q revenue
- Middle East conflicts (Israel-Hamas, Red Sea tensions) sustaining ammunition demand
- Military aircraft MRO: European/NATO rearmament boosting Q3 pipeline
3. Commercial Aerospace Recovery (MODERATE CONFIDENCE):
- Tariff-deferred S$34M from Q2 now flowing into Q3
- LEAP-1A engine contracts (5-year Air Cairo deal) ramping up
- Engine MRO: Supply chain normalization improving turnaround times
4. Margin Expansion Trajectory (HIGH CONFIDENCE):
- 1H2025 operating margin 10.2% (vs 9.5% historical)
- Defense digital business growing +14% (highest margin subsegment)
- Cost discipline + favorable product mix = sustained margins
Probability Risks - NEGATIVE:

1. Urban Solutions Lumpiness (MODERATE RISK):
- Satcom revenue -12% in 1H due to contract timing
- Rail projects (Thomson-East Coast Line) in early execution phase = minimal Q3 contribution
2. Forex Volatility (LOW RISK):
- USD/SGD ~1.32-1.34 range in Q3 = mild translation headwind
- Mitigation: Natural hedges via global cost base
3. China Economic Slowdown (LOW RISK):
- Minimal China revenue exposure (< 10% of group)
- Insulated: Defense, aerospace MRO, Singapore-based contracts
Verdict: 75% probability of 3Q2025 beat based on:
- S$5.0B contracted delivery pipeline
- Defense momentum + aerospace tariff recovery
- Margin expansion sustainability
  B. FY2025 Full-Year Probability: 85%
  
  Consensus Estimates (Bloomberg/S& P):
  - FY2025 Revenue: S$12.3B (+9.2% YoY)
  - FY2025 Net Profit: S$843M (+20% YoY)
  - FY2025 EPS: S$0.27 (+20% YoY)
  Full-Year Upside Catalysts:
  
  1. 2H2025 Seasonality (HIGH CONFIDENCE):
  - Historical Pattern: 2H typically contributes 52-54% of annual revenue
  - 1H2025: Already at S$5.92B (48% of S$12.3B target)
  - Math: 2H needs S$6.38B &rarr achievable with S$5.0B contracted + S$1.38B organic
  2. Order Book Conversion Acceleration (HIGH CONFIDENCE):
  - S$31.2B backlog + S$9.1B 1H wins = massive pipeline
  - Q4 Push: Typical year-end rush to deliver against KPIs
  - Defense clients (governments) spending FY budgets before year-end
  3. Portfolio Rationalization Benefits (MODERATE CONFIDENCE):
  - LeeBoy + SPTel divestments = S$450M proceeds for debt reduction
  - S$15M annual interest savings flowing into net profit
  - Focus on core high-margin defense/aerospace
  4. 5-Year Strategic Targets (LONG-TERM CONFIDENCE):
  - 2025 Investor Day announced revenue CAGR target > 2.5x global GDP
  - Net profit CAGR to exceed revenue CAGR by up to 5 percentage points
  - FY2025 as baseline year for 2025-2029 targets &rarr management incentivized to deliver
  Full-Year Downside Risks:
  
  1. Tariff Policy Uncertainty (MODERATE RISK):
  - US-China trade war escalation could impact aerospace supply chains
  - Mitigation: Already absorbed S$34M Q2 impact, no further guidance revision
  2. Interest Rate Environment (LOW RISK):
  - If rates stay elevated, project financing costs could compress margins
  - Mitigation: Strong FCF generation + debt paydown offsetting
  Verdict: 85% probability of FY2025 beat based on:
  - 2H seasonality + S$5.0B contracted pipeline
  - Margin expansion trajectory intact
  - Management track record + strategic targets at stake

kepoh88 ( Date: 21-Oct-2025 13:56) Posted:

Miss the boat

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kepoh88
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21-Oct-2025 13:56

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Miss the boat

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Singpost
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21-Oct-2025 08:02

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ST engr BIG DAY coming

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kepoh88
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30-Sep-2025 10:39

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No worries lah... Angmo house keep purchase.
Easily can sail to 88

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MrBear12
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30-Sep-2025 07:18

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Yells: "Cast all our anxieties on Jesus for He cares for us"

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No one interested in STEng anymore?

So quiet...

Hibernating like bear???

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Joelton
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ST Engineering &lsquo high-quality&rsquo and &lsquo defensive&rsquo growth play: RHB

Shekhar Jaiswal of RHB Bank Singapore (RHB) has maintained his &ldquo buy&rdquo call and target price of $9.10 on Singapore Technologies Engineering (ST Engineering) following the group&rsquo s unveiling of its new commercial aerospace (CA) maintenance, repair and overhaul (MRO) facility on Sept 15.

The group has an aim to double its capacity for CFM56 and LEAP engines to over 300 annually by 2027.

With the facility&rsquo s opening, total engine ST Engineering&rsquo s MRO throughput will exceed 400 shop visits a year when combined with the Xiamen facility.

Jaiswal writes: &ldquo This move is strategically important, given that over 4,000 LEAP-powered aircrafts are currently in service, and reflects ST Engineering&rsquo s ambition to broaden service offerings to include performance restoration and full overhaul shop visits.&rdquo

The analyst notes that the group is a &ldquo key regional player&rdquo in the &ldquo growing&rdquo segments of aviation maintenance with its designation of being a premier MRO provider in engineer manufacturer CFM International&rsquo s 2023 LEAP ecosystem.

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ST Engineering ramps up divestments, sharpens focus on AI

In the past decade, ComfortDelGro (CDG) has built a stronger international presence through targeted overseas acquisitions. Fuelled by the cash it built up over the years, the pace of activity has picked up in recent years, with three notable acquisitions in 2024: CMAC, A2B and Addison Lee.

The completion of these deals lifted CDG&rsquo s overseas revenue contribution past the 50% mark for the first time in its 1HFY2025 year ended June.

By contrast, Singapore Technologies Engineering (ST Engineering) has been offloading what it sees as non-core, as it looks to raise funds to pay down the debt from its US$2.7 billion acquisition of US transport systems firm TransCore in March 2022, and to invest in new growth areas such as artificial intelligence (AI).

On Sept 1, the two companies entered into yet another deal along these respective directions and with each other. ST Engineering sold its 46.5% stake in the CityCab joint venture to ComfortDelGro for $116.3 million.

For ST Engineering, the consideration, which was paid in cash, translates to an enterprise value/ebitda multiple of 5.5 times based on CityCab&rsquo s last 12 months unaudited ebitda for the period ended May 31. The divestment will result in a one-off gain on disposal of about $77.2 million for its current financial year.

Vincent Chong has been group president and CEO since 2016 and has completed 16 divestments as at March this year. Since then, ST Engineering has divested at least two more ventures, excluding CityCab. &ldquo We assess our portfolio continually, based on their financial performance historically, and then we assess them based on their financial performance or projections going forward, whether they are in a growth industry or not. We also look at whether we need its strategic capabilities and whether they are worth more to a different owner than to us,&rdquo said Chong in an interview with The Edge Singapore in March.

In June, the company announced the sale of its US-based construction equipment unit, LeeBoy, for US$290 million ($371 million). The net proceeds of some US$246 million will be used to pay down debt, saving interest costs of some US$9 million a year. The buyer is the French company Fayat Group, which is paying an enterprise value of 9.3 times LeeBoy&rsquo s ebitda. This deal was completed on Sept 4.

Less than a month later, on July 17, ST Engineering announced the sale of SPTel, a broadband joint venture with Singapore Power, for an enterprise value of $290 million. For its 51% stake, ST Engineering expects to book a one-off gain of around $80 million based on its carrying value for SPTel of around $65 million. This deal is expected to close in the fourth quarter of 2025.

In recent years, investors here have taken a liking to divestment stories, which are often pitched as part of an overall active capital management strategy. Companies with a sprawling portfolio of legacy assets and subsidiaries, such as CapitaLand, Keppel and Singapore Telecommunications, have made active asset monetisations part of their pitch to investors. ST Engineering, with its multi-prong growth story clearly articulated, seems to have joined this trend in its own way, winning investors&rsquo favour and making this stock the best-performing Straits Times Index (STI) component this year with a gain of 76.56% year to date.

On its own, the recent divestment of CityCab is unlikely to move the needle significantly. RHB Bank Singapore&rsquo s Shekhar Jaiswal estimates that ST Engineering is likely to lower interest costs of $2 million this year and $4 million a year from FY2026 onwards, a lev el deemed &ldquo immaterial&rdquo . For now, he is keeping his &ldquo buy&rdquo call with an unchanged target price of $9.10.

Defence, AI

One reason ST Engineering is enjoying strong growth this year is the broader bullish sentiment among investors towards the global defence sector. In the most recent 2QFY2025 alone, it won $1.5 billion worth of related contracts. These include wins to build a fleet of unmanned surface vessels and autonomous underwater vehicles used to counter mines, 40mm and 155 mm ammunition, as well as aircraft maintenance contracts for a North African air force.

Meanwhile, the digital business, covering AI, cloud and cyber solutions, secured contracts to roll out high-performance GPU infrastructure and data centre services, as well as training and simulation, along with the development and integration of AI-enabled command and control systems. Other wins include advanced encryption products and cloud-based managed security services for a customer in Asia.

As an adjacent domain to AI, the company is also boosting its cybersecurity offerings. On July 4, ST Engineering unveiled the AI-enabled threat elimination and response (AETHER) service, a subscription-based service aimed at providing SMEs with what is termed &ldquo comprehensive protection&rdquo from cyber risks. Priced at just $100 per endpoint, AETHER works in three stages: helping users identify, monitor and then prepare for oncoming security threats.

More recently, on Sept 4, ST Engineering announced a five-year, $250 million AI Research Translation programme for so-called &ldquo physical AI&rdquo , which refers to a branch of AI that enables machines to perceive, understand and interact with the physical by directly processing data from a variety of sensors.

This phased programme will advance robotics, swarm and humanoid solutions to address complex operational challenges, with a focus on supporting humanitarian situations. At the heart of the initiative is the Manned-Unmanned Teaming Operating System (MUMTOS), which serves as the &ldquo brain&rdquo of human-machine collaboration.

ST Engineering says the system can assess life-risk scores by measuring oxygen levels, structural stability and the number of people detected to prioritise rescue efforts. In real-life scenarios, MUMTOS helps first responders reach those in need quickly, while alerting hospitals and coordinating ambulance dispatch.

Lee Shiang Long, group chief technology and digital officer, says users can start to imagine themselves working with a &ldquo swarm&rdquo of robots. &ldquo Why a swarm? Because when you have a few robots coming together, say, in a scenario of firefighting, you want some robots to sense what is going on, where is the fire, where are the people, where are the casualties? The robots will feed the information back to the command centre, where we can then respond with more robots or a human team,&rdquo he says. To turn such scenarios into reality, ST Engineering is spending $250 million to either train or hire engineers and AI specialists.

The group&rsquo s deeper move into the cyber and AI space is sharpened by its new chief of the defence and public security unit, Mervyn Tan, a former air force chief who was most recently managing director of investment at venture capital firm Vertex Holdings, known for its series of investments in deep-tech ventures such as data security company Cyberhaven.

Still, the rise in global spending on defence will continue to anchor the group&rsquo s earnings in the years ahead. &ldquo We are very confident that what we saw as an increase in defence investment by partners, especially in Europe, is something that we assess to be structural in nature, and it is unlikely to weigh whether the wars or peace deal and war stopped in the medium-term,&rdquo says Tan at the company&rsquo s 1HFY2025 result briefing.

He adds: &ldquo I think our networks and our relationships with customers, both local as well as overseas, are very strong, and that speaks to my point, our strategy to leverage on our partners&rsquo policies to get to markets where our partners are more familiar with. This, added with our technologies, I think makes a strong winning formula.&rdquo

ComfortDelGro draws bigger turf in point-to-point business

Since 2025, ComfortDelGro (CDG) has managed CityCab as part of its local taxi business. In its announcement of the acquisition, CDG said that having full ownership will &ldquo strengthen the group&rsquo s core point-to-point business in Singapore and allow the group to integrate better and shape its global point-to-point business, adapting to market demands and boosting profit contribution&rdquo .

The acquisition &ldquo reinforces&rdquo CDG&rsquo s &ldquo confidence in point-to-point mobility as a key transportation solution&rdquo .

Jacquelyn Yow of CGS International notes that ST Engineering&rsquo s share of CityCab&rsquo s net profit for the FY2024 was $8.7 million, which translates into a price-to-earnings ratio of 13 times. She writes: &ldquo We deem the deal valuation as fair as CDG is currently trading at about 14 times FY2025 P/E.&rdquo

Based on the estimates of Eric Ong of Maybank Securities, CDG will see about four months of contribution in FY2025 from its additional stake in CityCab.

Meanwhile, DBS Group Research&rsquo s Chee Zheng Feng feels the transaction may bring about near-term share price softness given the &ldquo optics of investing in a shrinking business&rdquo , even though CDG will be better positioned to execute its point-to-point (P2P) strategy more effectively in Singapore.

In the 1H2025, CityCab had an average of 2,030 cabs in its fleet, 9% lower than the 2,222 cabs in the 1H2024. &ldquo Coupled with readthrough from CDG&rsquo s softer 1HFY2025 [ended June 30] Singapore taxi earnings due to the smaller fleet, suggest profitability could be lower this year,&rdquo Chee writes in his Sept 1 report.

While Chee expects the transaction to be &ldquo minorly&rdquo earnings-accretive for CDG&rsquo s FY2025 results at about $1.1 million or 0.5% of CDG&rsquo s full-year bottom line, the group will need to &ldquo show execution and synergy delivery&rdquo over the next six to 12 months.

RHB Bank Singapore&rsquo s Shekhar Jaiswal is also &ldquo cautious&rdquo on the capital deployment merits of the transaction, given the structural challenges in the taxi industry, including a shrinking fleet size and intensifying competition from private-hire operators.

Like DBS&rsquo s Chee, Jaiswal believes the transaction will depend on CDG&rsquo s execution moving forward. &ldquo Assuming a 3.5% funding cost (which could ease in 2026) and factoring in ongoing earnings pressure in the taxi segment, we estimate the deal will add $1.2 million (+0.5%) to [CDG&rsquo s] FY2025 profit and $3.5 million (+1.0%-1.2%) in FY2026-FY2027. These have been incorporated into our forecasts,&rdquo he writes.

All four analysts have kept their &ldquo add&rdquo and &ldquo buy&rdquo calls on CDG with target prices of $1.80 for DBS, $1.70 for CGSI, $1.70 for Maybank and $1.75 for RHB.

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MrBear12
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05-Sep-2025 11:35

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Exciting stuff. Not for the faint hearted.

Joelton ( Date: 05-Sep-2025 11:34) Posted:

ST Engineering will invest S$250 million to drive robotics solutions for complex challenges

The group aims to have 5,000 AI engineers over the next few years, through upskilling and external hiring

[SINGAPORE] ST Engineering is pouring S$250 million over the next five years into a programme that will drive physical artificial intelligence (AI) applications such as robotics, with an initial focus on human-machine collaboration.

In collaboration with academic and research partners, ST Engineering aims to improve physical AI &ndash which is able to interact and understand physical space through various sensors &ndash to tackle complex operational challenges.

At its annual InnoTech Conference on Thursday (Sep 4), the group showcased its Manned-Unmanned Teaming Operating System (Mumtos), which combines agentic and physical AI to act as a &ldquo brain&rdquo in human-machine collaboration.

Mumtos can coordinate robots, drones and autonomous vehicles to deliver actionable insights and enable faster decision-making across operations. ST Engineering also recently added smell sensors to it, allowing it to detect and identify more than 23 gas types in the open.

Its applications include humanitarian missions. Mumtos uses AI to help assess life-risk scoring &ndash which includes oxygen levels, structural stability and the number of people detected &ndash in prioritising rescue efforts.

Noting that the system is &ldquo highly adaptable and scalable&rdquo , Low Jin Phang, ST Engineering&rsquo s president of digital systems, said in his opening address at the conference: &ldquo We foresee the application of Mumtos extending from defence into a wide range of industrial and commercial applications, limited only by our imagination.&rdquo

Developing AI skills

As part of the S$250 million programme, ST Engineering will equip its workforce with the necessary AI skills. It aims to upskill 4,000 engineers in training AI modules and deploying AI systems.

Responding to media queries, group chief technology and digital officer Lee Shiang Long said that ST Engineering already has close to 2,000 engineers with the needed skills, and it intends to hire more.

He noted that to meet the group&rsquo s operational needs, ST Engineering will require engineers from different backgrounds. Beyond those with software and electrical engineering-related experience, the group will look to train employees in other fields, such as mechanical engineering.

In addition to these 4,000 engineers, ST Engineering plans to create 1,000 AI specialist roles. These will be focused on the development of AI modules, cybersecurity for AI, and agentic AI systems.

Some of these specialists may be external hires. The way Lee sees it, ST Engineering must also &ldquo embrace outside talent&rdquo , as they could have a good understanding of the latest technological developments.

To strengthen and grow its core of 1,000 AI specialists, the group is also looking to government schemes and training opportunities. These include the Infocomm Media Development Authority&rsquo s TechSkills Accelerator and Skills Pathway initiatives for cloud and cybersecurity.

&ldquo Bilingual&rdquo talent

Low noted that this is not ST Engineering&rsquo s first foray into the AI space.

Among its 27,000 employees, more than 10,000 are &ldquo AI-ready&rdquo , he pointed out. This means they have undertaken foundational training in the technology.

Also on Thursday, Low announced the group&rsquo s intention to develop a centre of excellence in physical AI innovations, but did not provide specific details. &ldquo We will continue to upskill our people to be &lsquo bilingual&rsquo AI talents in data science, machine learning, cloud infra-engineering, cybersecurity and domain-specific applications,&rdquo he added.

Minister for Digital Development and Information Josephine Teo, who was the guest of honour at the conference, noted that there is a need for people to acquire AI-related skills.

This will allow them to work with AI practitioners or specialists to transform their work and improve outcomes, she said.

&ldquo We believe these bilingual AI talents and their AI teammates are a formidable team. They will be pathfinders and pacesetters for meaningful AI adoption, not just in ST Engineering, but everywhere.&rdquo

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ST Engineering will invest S$250 million to drive robotics solutions for complex challenges

The group aims to have 5,000 AI engineers over the next few years, through upskilling and external hiring

Developing AI skills

As part of the S$250 million programme, ST Engineering will equip its workforce with the necessary AI skills. It aims to upskill 4,000 engineers in training AI modules and deploying AI systems.

In addition to these 4,000 engineers, ST Engineering plans to create 1,000 AI specialist roles. These will be focused on the development of AI modules, cybersecurity for AI, and agentic AI systems.

&ldquo Bilingual&rdquo talent

Low noted that this is not ST Engineering&rsquo s first foray into the AI space.

Among its 27,000 employees, more than 10,000 are &ldquo AI-ready&rdquo , he pointed out. This means they have undertaken foundational training in the technology.

Minister for Digital Development and Information Josephine Teo, who was the guest of honour at the conference, noted that there is a need for people to acquire AI-related skills.

This will allow them to work with AI practitioners or specialists to transform their work and improve outcomes, she said.

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https://links.sgx.com/1.0.0/corporate-announcements/V21KDX2VXZ4VJ7HZ/857868_20250901%20Divestment%20of%20Equity%20Interests%20in%20CityCab.pdf

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OCBC maintains $8.90 fair value on ST Engineering, on sustained defence spending and other growth drivers

ST Engineering shares dropped by some 14% after its 1HFY2025 results a fortnight ago.

Even so, OCBC Investment Research remains bullish on this stock, keeping its " buy" call and target price as the company' s fundamentals remain and its year to date share price gain of some 60% is deemed to have more legs.

" The recent share price pullback appears driven by profit-taking after its strong sector outperformance, which is a trend also observed among other global defence names as some investors trimmed positions," says OCBC in its Aug 29 note.

" Optimism around a potential Russia-Ukraine ceasefire also played a role."

From OCBC' s point of view, its 1HFY2025 report card is " solid" , with earnings up 19.7% y-o-y to $402.8 million.

Besides its " meaningful" exposure to defence-related manufacturing which is currently in a multi-year defence spending upcycle, ST Engineering' s integrated aerospace lifecycle fleet solutions enable better capture of maintenance, repair and overhaul spend.

The continued ramp-up of its passenger-to-freighter conversion business will support growth as well.

The company' s order book has reached $31.2 billion as of June 30, an increase of 18% y-o-y, with about $5 billion expected to be delivered in the remainder of the year. Around a third of the contracts are defence-related.

" This provides strong revenue visibility and underpins management&rsquo s confidence in execution for the rest of 2025," says OCBC.

The brokerage adds that ST Engineering is to be seen as a " differentiated" name versus its peers, thanks to its strong earnings visibility, a solid orderbook, and tailwinds across aerospace and defence.

" The company&rsquo s long-term growth story remains intact, underpinned by structural drivers of higher defence spending globally.

" Many nations also face ageing defence systems, pointing to sustained, not temporary, demand. Even if the Ukraine war ends, defence spending is likely to stay elevated. Our fair value estimate is unchanged at $8.90."

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01-Sep-2025 07:57

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Just getting started.

Look at its track record for dividend payments
1996 1.44
1997 3.11
1998 1.8
1999 6.8
2000 9.3
2001 9.5
2002 10.5
2003 18.5
2004 11.3
2005 12.4
2006 13.6
... ...
Between 2007 to 2023 13.6 to 16 cents annually

2024 17.0
2025 above 17.0 projected
2026 growth based on net profit growth......

From 1996 to 2024 a jump of 1.44 to 17.0 cents annual dividend.

And we have just started a new round of dividend increases.

Trade soundly asleep with STEng

Solid defensive company

agoago ( Date: 31-Aug-2025 23:10) Posted:

Is ST Engineering Overvalued&mdash or Just Getting Started?

Sharing a good analysis at https://tinyurl.com/r6sfaxhp

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agoago
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31-Aug-2025 23:10

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Is ST Engineering Overvalued&mdash or Just Getting Started?

Sharing a good analysis at https://tinyurl.com/r6sfaxhp

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ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

TIER 2: MODERATE EXIT (Balanced Approach)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

CONSOLIDATED EXIT STRATEGY SUMMARY

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

2. Segment Breakdown Showing Broad-Based Strength

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

TIER 2: MODERATE EXIT (Balanced Approach)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

CONSOLIDATED EXIT STRATEGY SUMMARY

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

2. Segment Breakdown Showing Broad-Based Strength

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

ST ENGINEERING (S63) - PROFIT-TAKING PRICE TARGETS AFTER $4.9B Q3 CONTRACT WINS

EXECUTIVE RECOMMENDATION: THREE-TIER PROFIT-TAKING STRATEGY

TIER 1: CONSERVATIVE EXIT (Risk-Averse )

TIER 2: MODERATE EXIT (Balanced Approach)

TIER 3: AGGRESSIVE EXIT (Hold for Max Gain)

CONSOLIDATED EXIT STRATEGY SUMMARY

WHY THESE PRICE TARGETS ARE REALISTIC

1. Contract Win Momentum ($4.9B Q3 + $14B YTD)

2. Segment Breakdown Showing Broad-Based Strength

3. Key Phrase from Announcement: Material Impact Caveat ⚠ ️

EXECUTIVE SUMMARY

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

B. Segment Performance - Broad-Based Strength

C. Order Book - Record Visibility

D. Balance Sheet & Capital Allocation

II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

B. FY2025 Full-Year Probability: 85%

EXECUTIVE SUMMARY

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

B. Segment Performance - Broad-Based Strength

C. Order Book - Record Visibility

D. Balance Sheet & Capital Allocation

II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

B. FY2025 Full-Year Probability: 85%

EXECUTIVE SUMMARY

I. FUNDAMENTAL ANALYSIS

A. 1H2025 Financial Performance - Exceptional

B. Segment Performance - Broad-Based Strength

C. Order Book - Record Visibility

D. Balance Sheet & Capital Allocation

II. TECHNICAL ANALYSIS - CHART INTERPRETATION

Price Action (March 2025 &rarr October 2025):

III. PROBABILITY ANALYSIS - 3Q2025 & FY2025 RESULTS

A. 3Q2025 Earnings Probability: 75%

B. FY2025 Full-Year Probability: 85%