- ST Engineering (SGX:S63)'s order book grew 16% y-o-y with half of new contract wins coming from defence. We raise estimates and lower our cost of capital assumption and raise ST Engineering's target price to S$9.5. Maintain HOLD on fair valuation (30.5x 12M fwd PE).
Navigating peaks
- - Read this at SGinvestors.io -
- Core PATMI was S$851m, +21% y-o-y, in line with our estimate. High single digit revenue growth coupled with better cost management underpinned growth despite fall in gross margins.
Disciplined execution
- - Read this at SGinvestors.io -
- Core EBIT grew 16% y-o-y led by improved margin mix and efficiency gains despite 180bps y-o-y decline in gross margin. Aerospace and defence businesses anchored EBIT growth as well, while EBIT for urban solutions business fell due to higher SATCOM losses.
- Gross debt was lower at S$4.8b (vs. S$5.8b a year ago) due to repayments from divestments. Including the interest cost savings, core PATMI rose 21% to S$851m.
Steady order wins anchored by defence
- Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybanktrade.com.sg/ 2026-03-02
Read also Maybank's most recent report:
2026-05-19 ST Engineering - Steady Execution.
Price targets by 4 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
