Should I buy ST Engineering stock in 2025?
Is it the right time to buy ST Engineering?
ScoreST Engineering (SGX: S63) stands as a resilient force in Singapore’s aerospace, defence, and smart city solutions sector. As of July 2025, the stock is trading at around S$7.80, with a recent average daily trading volume of approximately 6.92 million shares, signaling healthy investor engagement and liquidity. Over the past year, ST Engineering has surged nearly 81%, outperforming both sector and market benchmarks, buoyed by robust Q1 results—revenue rose 8% year-on-year, complemented by a record S$4.4 billion in new orders. Recent strategic advancements, such as partnerships with Airbus for cargo conversions and aggressive investments in AI and cybersecurity, highlight ongoing innovation. The market has largely embraced these developments as a foundation for future growth, maintaining a constructive and upbeat sentiment. The company’s updated dividend policy and ambitious five-year growth plan underline its commitment to shareholder value and sector leadership. Analysts from 14 national and international banks have set a consensus target price of S$10.14 for the stock, reflecting confidence in ST Engineering’s outlook despite a relatively high valuation. For investors seeking stability and exposure to Asia-Pacific’s infrastructure and defence growth, ST Engineering remains a compelling consideration.
- ✅Consistent double-digit revenue and order book growth in recent quarters.
- ✅Diversified portfolio across aerospace, smart city, and defence sectors.
- ✅New Airbus partnership and record order intake drive future business visibility.
- ✅Strong support from major shareholder Temasek Holdings, enhancing stability.
- ✅Robust track record of increasing dividends with updated payout policy.
- ❌Valuation remains elevated compared to sector averages, with PER above 30.
- ❌Significant revenue exposure to Asia-Pacific may add regional concentration risk.
Score- ✅Consistent double-digit revenue and order book growth in recent quarters.
- ✅Diversified portfolio across aerospace, smart city, and defence sectors.
- ✅New Airbus partnership and record order intake drive future business visibility.
- ✅Strong support from major shareholder Temasek Holdings, enhancing stability.
- ✅Robust track record of increasing dividends with updated payout policy.
Is it the right time to buy ST Engineering?
- ✅Consistent double-digit revenue and order book growth in recent quarters.
- ✅Diversified portfolio across aerospace, smart city, and defence sectors.
- ✅New Airbus partnership and record order intake drive future business visibility.
- ✅Strong support from major shareholder Temasek Holdings, enhancing stability.
- ✅Robust track record of increasing dividends with updated payout policy.
- ❌Valuation remains elevated compared to sector averages, with PER above 30.
- ❌Significant revenue exposure to Asia-Pacific may add regional concentration risk.
Score- ✅Consistent double-digit revenue and order book growth in recent quarters.
- ✅Diversified portfolio across aerospace, smart city, and defence sectors.
- ✅New Airbus partnership and record order intake drive future business visibility.
- ✅Strong support from major shareholder Temasek Holdings, enhancing stability.
- ✅Robust track record of increasing dividends with updated payout policy.
- What is ST Engineering?
- The ST Engineering Stock Price
- Our Full Analysis of the ST Engineering Stock
- How to buy ST Engineering stock in Singapore?
- 7 Tips for Buying ST Engineering Stock
- The latest news about ST Engineering
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of ST Engineering for over three years. Every month, hundreds of thousands of users in Singapore trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by ST Engineering.
What is ST Engineering?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Singapore | The company is a national champion with strong state backing. |
| 💼 Market | Singapore Exchange (SGX) | ST Engineering is among the largest and most traded on SGX. |
| 🏛️ ISIN code | SG1F60858221 | ISIN ensures transparent trading and efficient settlement. |
| 👤 CEO | Vincent Chong Sy Feng | The CEO has driven strong growth and innovation since 2016. |
| 🏢 Market cap | S$24.35 billion | A large cap status, offering good liquidity and index appeal. |
| 📈 Revenue | S$11.28 billion (TTM) | Robust top-line growth, with record orders supporting outlook. |
| 💹 EBITDA | S$1.21 billion (2024 est.) | Strong cash flows back expansion in core and new sectors. |
| 📊 P/E Ratio (Price/Earnings) | 33.96 (TTM) | High P/E reflects investor optimism and sector leadership. |
The ST Engineering Stock Price
The price of ST Engineering stock is falling this week. ST Engineering is trading at S$7.80, with a 24-hour decrease of S$0.15 (-1.89%) and down 2.38% over the past week. The company’s market capitalization stands at S$24.35 billion, with an average three-month daily volume of 6.92 million shares. The current P/E ratio is 33.96, while the dividend yield ranges from 2.05% to 2.18%. The stock has a low beta of 0.53, indicating relatively low volatility. Investors may value this stability, especially when seeking exposure to major SG industrials.
Our Full Analysis of the ST Engineering Stock
Having reviewed ST Engineering’s latest financial results alongside its robust share price performance over the past three years, we have synthesised multiple layers of data—ranging from financial ratios to technical signals and competitive positioning—through our proprietary analytical models. The collective insight from these diverse sources reveals important shifts in the company’s prospects. So, why might ST Engineering stock once again become a strategic entry point into the multi-sector technology and engineering market in 2025?
Recent performance and market context
Over the past twelve months, ST Engineering has delivered an exceptional share price appreciation of +80.97%, closing at S$7.80 as of July 2025. Even after a modest pullback of 2.38% for the week, the stock is trading near its historical highs—a clear sign of steady institutional demand. The interplay of several positives—an 8% year-on-year surge in Q1 revenue, a record S$4.4 billion in new orders, and an expanding order book to S$28.5 billion—underpins market confidence. Macroeconomic tailwinds, including increased defence and smart infrastructure spending across Asia and a cyclical pickup in global aviation, have enhanced the backdrop. In comparison to regional and global peers, ST Engineering’s diversified exposure provides resilience and strong upside potential for the SG investor.
Technical analysis
Technical signals currently favour a bullish stance. The Relative Strength Index (RSI) stands in the neutral-to-bullish zone (56.71-60.13), giving room for further advances without being overbought. The MACD oscillates in positive territory (0.08–0.14) and continues to deliver buy signals, suggesting that upward momentum is intact. All key moving averages—from 20-day to 200-day—confirm the trend, with the stock comfortably above its averages and every timeframe flashing buy signals. Immediate support is identified around S$7.73–7.78, with major support at S$7.61, while key resistance stands at the S$8.00–8.06 level (52-week high). Such technical structure supports an optimistic outlook, indicating that ST Engineering is well-positioned for further appreciation, even in short-term retracements.
Fundamental analysis
- Revenue: Annualised turnover reached S$11.28 billion, with Q1 2025 revenue up 8% year-on-year.
- Profitability: Net income (TTM) is S$702.26 million with a stable 6.2% margin, complemented by robust cashflows and a forward dividend of S$0.16–0.17 per share.
- Valuation: While its Price/Earnings ratio (33.96 TTM) is elevated relative to historical sector averages, persistent revenue growth, a high-quality order backlog, and strong regional positioning justify the premium. The consensus forward P/E drops to 28.99, reflecting further earnings potential as new projects ramp up.
- Growth and strategy: The company’s five-year plan targets an annual revenue CAGR of 8.6% through 2029, supported by international expansion, strategic partnerships, and a focus on high-value sectors like aerospace, defence, cyber, and smart-city solutions.
- Structural strengths: ST Engineering benefits from a strong brand, sector-leading innovation (notably in AI, cybersecurity, and MRO solutions), a dominant APAC market share, and the strategic backing of Temasek Holdings.
These facets underpin a scenario in which the fundamentals fully justify renewed interest and anticipate continued value creation.
Volume and liquidity
The company enjoys a daily average volume of 6.92 million shares, attesting to its high liquidity and broad marketability—an essential consideration for both institutional and retail investors seeking nimbleness in trade execution. With a public float at 47.9%, valuation remains dynamic, allowing responsive price discovery and organic moves on news flow or earnings surprises. This depth and tradability foster a positive environment for accumulation and upgrading of target prices by analysts and market participants.
Catalysts and positive outlook
- New product innovation: Expanding its footprint in AI-powered smart city infrastructure, next-gen aerospace, and advanced military tech.
- Partnerships and international growth: The Airbus A321 cargo conversion partnership strengthens global competitiveness; selective acquisitions and a growing presence in over 24 countries further diversify revenue streams.
- ESG initiatives: Commitment to green engineering and sustainable solutions aligns with expanding investor focus on ESG performance.
- Sectoral trends: Global defence spending is rising, and the post-pandemic resurgence in commercial aviation continues to support high-margin MRO activities.
- Regulatory support: Singapore’s pro-innovation policies, stable tax environment, and designation of ST Engineering as a strategic asset by Temasek add multiple layers of security and upside.
The firm’s record order book and guidance of S$8.8 billion in deliveries for 2025 cement a very visible path to earnings expansion, increasing odds of upward earnings surprises and further target upgrades.
Investment strategies
- Short-term: Current technical momentum, poised near major support and just below resistance, offers an ideal window for tactical entry, especially for those seeking a “buy-the-dip” opportunity on any minor retracement.
- Medium-term: Anticipated news flow (such as quarterly results, new contracts, or partnership announcements) coupled with expected progress on strategic initiatives can support price advances over coming months.
- Long-term: Structural drivers—revenue CAGR, leading market share, and sectoral leadership—alongside an appealing dividend yield (2.05%–2.18%) and shareholder-friendly payout policy make ST Engineering a quality core holding for patient SG investors.
Ideal positioning could involve accumulating on dips close to S$7.61–7.73 or taking an overweight stance as the company approaches major catalysts over the next 6–12 months.
Is it the right time to buy ST Engineering?
- Unmatched historical share price performance and all-time high order momentum.
- Technical indicators and market structure align to support further appreciation.
- Rock-solid fundamentals, strategic innovation, strong management, and visible growth levers.
- Ample liquidity and clear institutional interest, with strong public float mechanics.
- Multiple medium- and long-term catalysts on the horizon.
In summary, ST Engineering stands out as a truly exceptional story within the Singapore and APAC tech-industrial sector: Given these combined strengths, the timing seems to represent an excellent opportunity for both tactical and long-term investors. For those seeking growth and resilience in the technology and engineering space, ST Engineering’s fundamentals, technicals, and market context all suggest the stock may be entering a new bullish phase—worthy of renewed attention and, for many, a strategic portfolio addition.
How to buy ST Engineering stock in Singapore?
Buying ST Engineering stock online is simple and secure when you use a regulated broker in Singapore. Investors typically choose between two main methods: buying shares directly (also called spot or cash buying) or trading via contracts for difference (CFDs) for more dynamic exposure. Each method has its own advantages, depending on your objectives and appetite for leverage. To help you find the most competitive options, be sure to check out our broker comparison further down the page.
Spot buying
A cash purchase of ST Engineering stock means you buy and own the shares directly. This method involves a fixed brokerage commission—usually S$5 to S$15 per order, depending on your chosen broker in Singapore. As a shareholder, you benefit from any dividends paid and direct participation in the company’s success.
Gain scenario
If the ST Engineering share price is S$7.80, you can buy around 127 shares with a S$1,000 stake, including a brokerage fee of around S$5.
If the share price rises by 10%, your shares are now worth S$1,100.
Result: +S$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on ST Engineering shares allows you to speculate on the price movement without owning the underlying shares. You only need a fraction of the capital thanks to leverage, but you will pay the spread (difference between buy and sell price) and overnight financing fees if you keep the position open beyond a day. This is a popular choice for active investors seeking larger exposure with less upfront cash.
Gain scenario
You open a CFD position on ST Engineering shares, with 5x leverage. This gives you a market exposure of S$5,000 with just S$1,000 invested.
If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +S$400 gain, on a bet of S$1,000 (excluding fees).
Final advice
Before investing, always compare brokers’ fees, spreads, and platform features, as these can significantly impact your returns. The right choice between direct share ownership and CFD trading will depend on your financial goals, investment horizon, and risk tolerance. For more details and to find the platform that suits you best, consult our broker comparator further down this page.
Check out the best brokers in Singapore!Compare brokers7 Tips for Buying ST Engineering Stock
| 📊 Step | 📝 Specific tip for ST Engineering |
|---|---|
| Analyze the market | Assess industry trends and ST Engineering’s recent performance on the SGX for better entry timing. |
| Choose the right trading platform | Opt for a MAS-regulated broker with competitive fees and direct access to SGX-listed ST Engineering shares. |
| Define your investment budget | Decide how much to invest in ST Engineering based on your financial goals and diversification needs. |
| Choose a strategy (short or long term) | Consider ST Engineering’s stable dividends and growth plans to align with a longer-term investment strategy. |
| Monitor news and financial results | Keep updated with quarterly reports, large contracts, and analyst upgrades for timely buy decisions. |
| Use risk management tools | Set stop-loss or take-profit levels to protect your position in ST Engineering. |
| Sell at the right time | Review your objectives and market signals to decide when to realise your gains on ST Engineering. |
The latest news about ST Engineering
ST Engineering reported quarterly revenue growth of 8% year-on-year, beating market consensus. The company generated S$2.9 billion in sales for Q1 2025, outpacing analyst expectations and confirming solid demand for its solutions across aerospace, defence, and smart city segments in Singapore.
Recent technical indicators show a confirmed upward trend, with all major moving averages signalling "buy". Both 20, 50, 100, and 200-day moving averages highlighted a robust technical outlook, supported by a consensus “Strong Buy,” suggesting confidence among both technical and institutional investors based in Singapore.
ST Engineering secured a record S$4.4 billion in new contracts, strengthening its order book. The backlog now stands at S$28.5 billion, an all-time high, reflecting a surge in regional infrastructure and defence demand as well as the company’s deep ties to key Singaporean stakeholders.
A revised dividend policy promises to redistribute a greater share of profits to shareholders starting in 2026. ST Engineering's Board recently confirmed that beginning next year, one-third of incremental profits above the base dividend will be returned to investors, further enhancing its appeal to income-focused investors in Singapore.
Recent partnerships and innovation initiatives position ST Engineering as a leader in regional smart city and aerospace solutions. The strategic agreement with Airbus for A321 cargo conversions and its increased investments in AI and cybersecurity reinforce its status as a flagship Singaporean industrial player with growing international reach.
FAQ
What is the latest dividend for ST Engineering stock?
ST Engineering currently pays a dividend, with the latest declared at S$0.18 per share for 2025. The most recent ex-dividend date was 20 May 2025. The yield remains attractive for income investors, and a new dividend policy will see one-third of additional profits distributed from 2026, reinforcing the company’s commitment to regular shareholder returns.
What is the forecast for ST Engineering stock in 2025, 2026, and 2027?
Based on the current price, projections are S$10.14 for end-2025, S$11.70 for end-2026, and S$15.60 for end-2027. The company’s order book is at a record high and analyst targets suggest continued upward momentum, supported by its leading position in defence and smart city sectors.
Should I sell my ST Engineering shares?
Based on strong fundamentals, a robust order book, and ongoing sector expansion, holding ST Engineering shares may be wise for those seeking long-term value. The company’s strategic diversification, resilient earnings, and positive analyst sentiment all support a favourable outlook for Singapore investors. Mid- to long-term holding appears appropriate in view of growth prospects and market stability.
Are dividends from ST Engineering stock subject to tax in Singapore?
Dividends from ST Engineering are tax-exempt for Singapore residents under the one-tier system, so you receive the full payout. There is no withholding tax on dividends for individuals, making it a tax-efficient choice for local investors. Capital gains from share sales are also not taxed in Singapore.
What is the latest dividend for ST Engineering stock?
ST Engineering currently pays a dividend, with the latest declared at S$0.18 per share for 2025. The most recent ex-dividend date was 20 May 2025. The yield remains attractive for income investors, and a new dividend policy will see one-third of additional profits distributed from 2026, reinforcing the company’s commitment to regular shareholder returns.
What is the forecast for ST Engineering stock in 2025, 2026, and 2027?
Based on the current price, projections are S$10.14 for end-2025, S$11.70 for end-2026, and S$15.60 for end-2027. The company’s order book is at a record high and analyst targets suggest continued upward momentum, supported by its leading position in defence and smart city sectors.
Should I sell my ST Engineering shares?
Based on strong fundamentals, a robust order book, and ongoing sector expansion, holding ST Engineering shares may be wise for those seeking long-term value. The company’s strategic diversification, resilient earnings, and positive analyst sentiment all support a favourable outlook for Singapore investors. Mid- to long-term holding appears appropriate in view of growth prospects and market stability.
Are dividends from ST Engineering stock subject to tax in Singapore?
Dividends from ST Engineering are tax-exempt for Singapore residents under the one-tier system, so you receive the full payout. There is no withholding tax on dividends for individuals, making it a tax-efficient choice for local investors. Capital gains from share sales are also not taxed in Singapore.
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