ST Engineering - RHB Research 2025-08-15: Record Orderbook & Margins Resilience Drives Growth

• ST Engineering's 1H25 earnings were in line, with Defence & Public Security (DPS) margins exceeding expectations.
• Record-high orderbook and solid revenue visibility, underpinned by growth in the Commercial Aerospace (CA) and DPS units, expanding international defence orders (amid rising global defence spending), and minimal exposure to trade tariffs reinforces the investment case in the stock.

1H25 highlights.

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• Operating margins improved on a better product mix and cost savings, with S$100m achieved in 1H25 (part of a S$1bn 5-year cost savings target).
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• An interim 4 cents dividend brings 1H25 dividend/share to 8 cents, with full-year ST Engineering's dividends of 18 cents guidance reaffirmed.

Growth drivers.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Previous report by RHB:
2025-07-24 ST Engineering 2Q25 Orders - Sustained Momentum In All Segments.

Price targets by 2 other brokers at ST Engineering Target Prices.

Listing of research reports at ST Engineering Analyst Reports.

Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividend Payout Dates & Corporate Actions,
ST Engineering News