- ST Engineering (SGX:S63) (STE) is one of the few leading defence proxies in the region and is well-positioned for growth given its:
- meaningful exposure to defence-related manufacturing which is currently in a multi-year defence spending upcycle;
- - Read this at SGinvestors.io -
- continued ramp-up of its passenger-to-freighter conversion business which will support growth.
- About a third of the group’s business is defence related. In FY24, the group secured new contracts of S$12.6b, bringing the total order book to S$28.5b.
One-off items mask resilient core performance and strong order visibility.
- ST Engineering's share price has risen ~14% year-to-date, following a strong 81% gain in 2025, and has outperformed the Straits Times Index (STI) for three consecutive years.
- - Read this at SGinvestors.io -
- In FY25, ST Engineering completed several divestments, including LeeBoy, SPTe, CityCab and STARCO, generating total divestment gains of S$306m. However, this was offset by impairment losses of S$689m related to iDirect and JetTalk, resulting in a net one-off loss of S$383m. Despite these impairments, we believe ST Engineering’s core businesses remained resilient with robust order momentum.
Defence stocks continue to find favour in the current global environment.
- Read more at SGinvestors.io.
