Should I buy ST Engineering stock in 2025?
Is ST Engineering stock a buy right now?
ScoreAs of May 2025, ST Engineering trades at around S$7.63 on the SGX, with a recent daily average trading volume of nearly 9.7 million shares. Following a remarkable year—marked by a near doubling of share price (+95%) and strong order book momentum—the company unveiled its five-year growth strategy targeting robust revenue and net profit expansion through 2029. Its Q1 2025 financials show contract wins of S$4.4 billion and revenue growth of 8%, reflecting consistent operational execution across aerospace, smart city, and defense segments. Market sentiment currently acknowledges ST Engineering’s solid fundamentals, especially as the group benefits from rising global defense spending and accelerated urban innovation in Asia. While some technical indicators signal a near-term overbought condition, the company’s new dividend policy and regular dividend increases reflect growing management confidence in future cash flows. In Singapore’s industrial sector, ST Engineering’s stability, diversification, and government backing continue to appeal. According to a consensus of more than 34 national and international banks, the target price stands at S$9.92, underlining continued confidence in the group’s long-term prospects. Despite a premium valuation, ongoing innovation and a robust global footprint suggest the stock merits serious consideration at this juncture, particularly for investors seeking growth and reliable yield in a blue-chip Singapore name.
- ✅Strong order book of S$28.5 billion ensures multi-year revenue visibility.
- ✅Exposure to both commercial aerospace and fast-growing global defense markets.
- ✅Dividend policy upgraded, signalling shareholder confidence and potential payout growth.
- ✅Sustained double-digit earnings growth outlook through 2029 from strategic initiatives.
- ✅Low share price volatility (beta 0.28) provides resilience within the sector.
- ❌Current P/E of 34.68 is elevated compared to historical sector norms.
- ❌Short-term technical signals point to potential price consolidation after recent rally.
- ✅Strong order book of S$28.5 billion ensures multi-year revenue visibility.
- ✅Exposure to both commercial aerospace and fast-growing global defense markets.
- ✅Dividend policy upgraded, signalling shareholder confidence and potential payout growth.
- ✅Sustained double-digit earnings growth outlook through 2029 from strategic initiatives.
- ✅Low share price volatility (beta 0.28) provides resilience within the sector.
Is ST Engineering stock a buy right now?
ScoreAs of May 2025, ST Engineering trades at around S$7.63 on the SGX, with a recent daily average trading volume of nearly 9.7 million shares. Following a remarkable year—marked by a near doubling of share price (+95%) and strong order book momentum—the company unveiled its five-year growth strategy targeting robust revenue and net profit expansion through 2029. Its Q1 2025 financials show contract wins of S$4.4 billion and revenue growth of 8%, reflecting consistent operational execution across aerospace, smart city, and defense segments. Market sentiment currently acknowledges ST Engineering’s solid fundamentals, especially as the group benefits from rising global defense spending and accelerated urban innovation in Asia. While some technical indicators signal a near-term overbought condition, the company’s new dividend policy and regular dividend increases reflect growing management confidence in future cash flows. In Singapore’s industrial sector, ST Engineering’s stability, diversification, and government backing continue to appeal. According to a consensus of more than 34 national and international banks, the target price stands at S$9.92, underlining continued confidence in the group’s long-term prospects. Despite a premium valuation, ongoing innovation and a robust global footprint suggest the stock merits serious consideration at this juncture, particularly for investors seeking growth and reliable yield in a blue-chip Singapore name.
- ✅Strong order book of S$28.5 billion ensures multi-year revenue visibility.
- ✅Exposure to both commercial aerospace and fast-growing global defense markets.
- ✅Dividend policy upgraded, signalling shareholder confidence and potential payout growth.
- ✅Sustained double-digit earnings growth outlook through 2029 from strategic initiatives.
- ✅Low share price volatility (beta 0.28) provides resilience within the sector.
- ❌Current P/E of 34.68 is elevated compared to historical sector norms.
- ❌Short-term technical signals point to potential price consolidation after recent rally.
- ✅Strong order book of S$28.5 billion ensures multi-year revenue visibility.
- ✅Exposure to both commercial aerospace and fast-growing global defense markets.
- ✅Dividend policy upgraded, signalling shareholder confidence and potential payout growth.
- ✅Sustained double-digit earnings growth outlook through 2029 from strategic initiatives.
- ✅Low share price volatility (beta 0.28) provides resilience within the sector.
- What is ST Engineering?
- How much is ST Engineering stock?
- Our full analysis on ST Engineering </b>stock
- How to buy ST Engineering stock in Singapore?
- Our 7 tips for buying ST Engineering stock
- The latest news about ST Engineering
- FAQ
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At HelloSafe, our expert has been monitoring ST Engineering's performance for over three years. Every month, tens of thousands of users in Singapore rely on us to analyse market trends and uncover the best investment opportunities. Our analyses are crafted for informational purposes only and do not represent investment advice. In line with our ethical charter, we have never been, and will never be, paid by ST Engineering.
What is ST Engineering?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Singapore | Local champion with strong backing from the Singapore government (majority shareholder). |
| 💼 Market | Singapore Exchange (SGX: S63) | Leading industrial player listed on SGX, widely followed by both retail and institutional investors. |
| 🏛️ ISIN code | SG1F60858221 | Globally unique identifier for the stock, essential for cross-border transactions. |
| 👤 CEO | Vincent Chong | Long-serving CEO, credited for strong growth and strategic transformation since his appointment. |
| 🏢 Market cap | S$23.82 billion | Large-cap status gives stability and market influence, attracting institutional investment. |
| 📈 Revenue | S$2.9 billion (Q1 2025) | Solid 8% YoY growth driven by robust contract wins and strong performance in key segments. |
| 💹 EBITDA | Not disclosed (Net profit: S$702m, margin: 6.2%) | Profitability is healthy, though EBITDA level is not specifically reported in latest results. |
| 📊 P/E Ratio (Price/Earnings) | 34.68 (TTM), 27.78 (Forward) | High relative to sector; signals growth optimism but stretches valuation in short term. |
How much is ST Engineering stock?
The price of ST Engineering stock is rising this week. As of today, ST Engineering trades at S$7.63 per share, marking a 1.60% gain over the past 24 hours and a 3.81% increase for the week. The company’s market capitalisation stands at S$23.82 billion, with a three-month average daily volume of 9.68 million shares. Valuation sits at a P/E ratio of 34.68, offering a dividend yield of 2.66%, and the stock beta is 0.28, indicating lower volatility than the broader market. While ST Engineering’s upward trend highlights strong investor confidence, its current valuation and overbought signals suggest short-term price movements may remain dynamic.
Check out the best brokers in Singapore!Compare brokersOur full analysis on ST Engineering stock
After a thorough review of ST Engineering’s latest financial results and a comparative analysis of the stock’s performance over the past three years, it is clear that the company stands at a pivotal moment. By integrating key financial indicators, technical momentum, market sentiment, and competitors’ metrics using our proprietary algorithms, we find compelling evidence of robust fundamentals and a dynamic growth trajectory. So, why might ST Engineering stock once again become a strategic entry point into the Asian technology and defense sector in 2025?
Recent Performance and Market Context
Over the last twelve months, ST Engineering (S63.SI) has delivered a remarkable return, nearly doubling its share price with a 1-year gain of 95.14%—significantly outpacing both the Straits Times Index and global industrial peers. The current share price of S$7.63 sits at the upper end of its 52-week range (S$3.88 – S$7.67), highlighting sustained strength and formidable investor confidence. Notably, the stock’s YTD gain stands at +63.73%, underscoring meaningful momentum heading into the mid-year.
Recent trading volume remains healthy, averaging 9.68 million shares daily over the last three months, with a recent session recording 6.78 million shares. This level of liquidity points to strong market engagement and ease of entry or exit for investors.
Crucially, Q1 2025‘s revenue accelerated by 8% year-over-year, reaching S$2.9 billion, while net contract wins soared to a record S$4.4 billion in the quarter. Buoyed by a robust order book of S$28.5 billion (with nearly S$9 billion for 2025 delivery) and a leadership stance in key macro themes—defense modernization, smart city infrastructure, and digital transformation—ST Engineering’s operating environment appears exceptionally favorable. With the Singapore government’s shareholder stability and global defense procurement cycles trending upward, macroeconomic winds are indeed at ST Engineering’s back.
Technical Analysis
From a technical perspective, ST Engineering’s chart pattern radiates upward momentum. The 20-day (S$7.12), 50-day (S$6.55), 100-day (S$5.93), and 200-day (S$5.28) exponential moving averages all comfortably trail the current share price, presenting a clear bullish structure indicative of persistent buying pressure. The positive slope of every major moving average confirms an entrenched uptrend.
The Relative Strength Index (RSI 14) at 70.06, and the MACD (12,26,9) at 0.30, are both flashing “overbought” and “sell” signals, respectively. Typically, these might suggest the risk of a short-term pullback or sideways consolidation. Nonetheless, the robust price remaining above all key support levels (S$7.21, S$7.32, S$7.40), with immediate resistance only marginally ahead at S$7.70/S$7.78, means aggressive dips are routinely met with dip buying—signaling underlying investor conviction and limiting downside risk. The overall technical consensus is mixed: oscillators are short-term cautious, but moving averages remain strongly bullish.
In summary, the prevailing technical posture provides encouragement for medium- to long-term investors. Historically, when ST Engineering has entered these technical “overbought” phases against a backdrop of strong fundamentals, subsequent consolidations have proven to be optimal windows for strategic accumulation.
Fundamental Analysis
Fundamentally, ST Engineering’s financial health and business expansion strongly reinforce its bullish investment case:
- Revenue Growth & Profitable Expansion: Q1 2025 revenue surged to S$2.9 billion (+8% y/y), and net profit margins remained above 6%. The company’s five-year strategic plan (2025-2029) targets an ambitious 8.6% CAGR revenue growth, with profit expansion outpacing revenue, propelled by operational leverage and technology-enabled productivity.
- Attractive Valuation, Supported by Quality: Although its trailing P/E ratio sits at 34.68 (above industry median), the forward P/E moderates to 27.78 and the PEG ratio of 1.88 is within an attractive range for high-growth, high-quality names. A Price/Sales below 3 and Return on Equity of 25.57% further illustrate the company’s efficiency and value generation versus peers.
- Dividend Momentum: ST Engineering has materially enhanced its dividend payout for FY2025 to 18.0 cents per share (2.66% yield), with a bold new policy: from FY2026, a third of incremental profit growth will be shared as additional dividends. This underscores management’s confidence in recurring profitability and offers a reliable source of total return for investors.
- Structural Strengths: The group’s diversified business lines—across defense, aerospace, cybersecurity, and smart city verticals—deliver not just earnings resilience but also sustainable growth. Deep government linkages (Temasek/52.1% stake) and a global footprint insulate ST Engineering from local or sectoral shocks and open potential for strategic expansion abroad.
- Innovation Priority: With ongoing investments in AI, next-generation cybersecurity, and digital infrastructure, ST Engineering is consistently strengthening its competitive moat and positioning ahead of secular technology trends.
- Stable Revenue, Repeat Business: Long-term, recurring contracts in both defense and commercial aerospace provide remarkable earnings visibility—a rare value in volatile markets.
These fundamentals, coupled with management’s strong execution track record, position ST Engineering as a high-conviction candidate for investors seeking both quality and growth in the Singapore equity landscape.
Volume and Liquidity
ST Engineering’s trading characteristics further endorse its suitability for institutional and retail portfolios alike. Average daily volume of 9.68 million shares signals robust liquidity, allowing substantial trades with minimal market impact. The stock’s beta of 0.28 indicates low volatility relative to the market, complementing portfolio risk mitigation strategies. A substantial free float (47.9%) ensures price discovery remains dynamic, while healthy volume reflects ongoing investor confidence and supports a dynamic, upward-sloping valuation.
Catalysts and Positive Outlook
Several forward-looking catalysts reinforce optimism for ST Engineering’s continued outperformance:
- Order Book Acceleration: A record S$28.5 billion order backlog (with S$8.8 billion deliverable in 2025) points to revenue locked in for years ahead, offering both downside protection and cyclical upside.
- Defense Segment Tailwinds: With governments globally ramping up defense spending, ST Engineering’s defense and security solutions are seeing surging demand—a macro driver that is expected to persist through this decade.
- Smart City and Digital Transformation: As Southeast Asia accelerates investment in smart infrastructure and digitalization, ST Engineering’s Smart City and Digital Technology segments stand at the vanguard of secular growth themes.
- Dividend Policy Enhancement: The new capital return policy not only projects confidence, but also incentivizes fresh capital inflows seeking yield and growth.
- Innovation & ESG Initiatives: Investments in AI-driven predictive maintenance, green engineering solutions, and ESG-focused projects position the company for future regulatory and market support.
- Favorable Market Context: The Singaporean and regional industrial landscape remains resilient, with government support evident in major shareholder alignment and policy direction. Regulatory developments underpin a positive climate for high-value engineering and technology solutions.
- Industry Leadership Recognition: Recent accolades for technology leadership and project execution have burnished the company’s brand, fueling greater contract wins and international expansion opportunities.
All of these catalysts indicate the potential for a sustained new bullish phase, setting the stage for ST Engineering to outperform established benchmarks.
Investment Strategies
ST Engineering presents a rare blend of technical, strategic, and fundamental strengths, making it compelling for various types of investors:
- Short-Term Positioning: For momentum-oriented investors, minor consolidation phases following technical overbought signals have historically provided attractive entry points. Strong order momentum and catalysts such as order announcements or dividend payments may spur further rallies.
- Medium-Term Perspective: Those targeting a 12-24 month horizon may find today’s price justified by:
- Earnings upgrades as high-margin defense and smart city projects ramp up,
- Consistent dividend enhancements,
- Realization of strategic investments and M&A synergies.
- Long-Term Conviction: For buy-and-hold investors, the multi-year growth pathway (8.6% revenue CAGR, strong ROE, robust order book), government-linked stability, and technology leadership all combine to suggest that current levels may still be at the start of a secular re-rating.
In particular, the stock’s technical structure—trading near a new high but with powerful fundamental momentum—suggests the window for addition remains highly supportive, with downside risk guarded by operational execution and contractual visibility.
Is it the Right Time to Buy ST Engineering?
In summary, ST Engineering appears poised at the intersection of strong topline growth, expanding profitability, and strategic sector leadership. Key strengths include:
- Record order backlog ensuring multi-year revenue visibility
- Enhanced, progressive dividend policy for shareholder yield
- Robust, well-balanced business model with global exposure and government backing
- Innovation leadership in AI, cybersecurity, and green solutions
- Sound technical and liquidity profile minimizing risk of adverse shocks
Admittedly, valuation multiples reflect the quality premium and recent run-up, and technical oscillators call for prudent entry timing. Yet, fundamentals justify renewed interest, and the operational strengths provide ample justification for considering ST Engineering as a fresh, high-quality addition to diversified portfolios.
With the company’s growth trajectory, enhanced capital return policy, and strong sector backdrops, ST Engineering seems to represent an excellent opportunity for investors attuned to structural winners in the Singapore tech-industrial landscape. For those seeking a blend of yield, growth, and resilience, this stock may be entering a new bullish phase worthy of serious consideration. The balance of performance, innovation, and defensive characteristics creates a compelling conviction opportunity as 2025 unfolds for Singapore’s premier engineering and technology leader.
How to buy ST Engineering stock in Singapore?
Buying ST Engineering (S63.SI) shares online is a straightforward and secure process when you use a reputable, MAS-regulated broker in Singapore. Today, investors can choose between two main methods: spot buying (direct ownership of shares) or trading Contracts for Difference (CFDs), which allow you to benefit from price movements using leverage. Each method offers different advantages in terms of risk, costs, and types of returns. To help you get started, we have provided a clear comparison of top brokers further down the page.
Spot Buying
A cash (or spot) purchase means you are buying ST Engineering shares outright on the Singapore Exchange (SGX) and becoming a shareholder. With this method, you own the underlying asset and may be eligible to receive dividends. Most Singaporean brokers charge a fixed commission per order—typically ranging from S$5 to S$25, depending on the broker and trade size. Clearing and other minor fees may also apply.
Example
Suppose the ST Engineering share price is S$7.63. With a S$1,000 investment and a brokerage fee of around S$5, you can buy approximately 130 shares (S$1,000 - S$5 = S$995; S$995 / S$7.63 ≈ 130 shares).
Gain scenario
If the share price rises by 10%, your 130 shares are now worth about S$1,100 in total.
Result: That’s a S$100 gross gain, or a 10% return on your investment (excluding fees and taxes).
Trading via CFD
A Contract for Difference (CFD) is a derivative product that allows you to speculate on the price movements of ST Engineering shares without owning the actual stocks. This method is popular for those seeking short-term opportunities and higher leverage. Instead of a fixed commission, CFD trading typically involves paying the spread (the difference between buy and sell price) and, if you hold positions overnight, additional financing charges may apply.
Example
You open a CFD position with a S$1,000 margin using 5x leverage, giving you an effective exposure of S$5,000 on ST Engineering shares.
Gain scenario
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: You realise a S$400 gain on your S$1,000 initial margin (excluding spreads and overnight financing costs).
Final Advice
Before investing, always compare brokers’ fees, trading platforms, and regulatory protections to ensure you choose the option best suited to your needs—a detailed comparison is available further down the page. Remember, spot buying offers direct ownership and dividends, while CFD trading provides flexibility and leverage. Your decision should reflect your financial goals, risk appetite, and investment horizon. With proper preparation and the right broker, investing in ST Engineering can be both rewarding and accessible.
Check out the best brokers in Singapore!Compare brokersOur 7 tips for buying ST Engineering stock
| 📊 Step | 📝 Specific tip for ST Engineering |
|---|---|
| Analyze the market | Examine ST Engineering’s strong share price performance and sector trends, noting its recent rapid gains and leadership in Singapore’s aerospace and defense industries. |
| Choose the right trading platform | Opt for an SGX-accredited broker that offers competitive fees and seamless SGD transactions, making it easy to buy and manage ST Engineering shares as a local investor. |
| Define your investment budget | Set a realistic investment amount by considering your risk profile; with ST Engineering trading at a premium, ensure your portfolio is diversified and sized for your financial goals. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from the company’s robust order book, stable dividends, and projected profit growth, but stay alert for near-term volatility. |
| Monitor news and financial results | Regularly track quarterly updates, management commentary, and new contract announcements, as these often impact ST Engineering’s business momentum and share price. |
| Use risk management tools | Apply stop-loss orders or staggered entry points to mitigate potential downturns, especially with technical signals indicating the stock may be overbought in the short term. |
| Sell at the right time | Monitor both technical indicators (such as RSI and resistance levels) and company milestones; consider taking profits or reducing exposure if signs of a pullback or overvaluation emerge. |
The latest news about ST Engineering
ST Engineering stock rallied to an all-time high, rising over 3.8% in the last week. The share price closed at S$7.63, marking a new historical peak and extending its impressive year-long gain to 95.14%. This performance considerably outpaces the broader Singapore market and the benchmark Straits Times Index, reflecting heightened investor confidence driven by recent strong quarterly results and enthusiastic response to the company’s future growth guidance.
Robust Q1 2025 results showed 8% revenue growth and record S$4.4 billion in new contract wins. ST Engineering reported first quarter revenues of S$2.9 billion and announced substantial new contracts in both civil aerospace and defense segments. Particularly noteworthy is the defense order momentum, fueled by expanded Southeast Asian and international demand amid a heightened geopolitical focus on national security and advanced technology solutions. These wins support Singapore’s positioning as a regional defense technology hub.
The company’s enhanced dividend policy signals management’s confidence in sustained profit growth. For fiscal year 2025, ST Engineering raised its planned dividend to 18.0 cents per share and introduced a policy to pay out one-third of additional future net profit as incremental dividends from 2026. With the interim dividend of 4.0 cents per share set for distribution in June, this move reaffirms its commitment to shareholder returns and generates renewed interest in income-focused Singaporean investors.
ST Engineering’s long-term order book reached S$28.5 billion, with strong visibility for 2025 and beyond. Of this, S$8.8 billion is anticipated for delivery in 2025, providing revenue certainty and a significant buffer against short-term market volatility. The high proportion of multi-year government and commercial contracts, particularly with Singapore-based agencies and regional clients, underscores the group’s resilient and diversified business model, which is well-aligned with the city-state’s Smart Nation and defense modernization initiatives.
While technical indicators highlight an overbought condition, analyst consensus remains positive on fundamentals. With the 14-day RSI surpassing 70 and oscillators signaling caution for near-term price corrections, the technical picture suggests possible consolidation ahead. However, strong buy signals from longer-term moving averages, robust earnings momentum, and solid state-backed ownership (notably Temasek’s 52% stake) continue to underpin analyst optimism for ST Engineering’s medium- to long-term prospects in the Singapore market.
FAQ
What is the latest dividend for ST Engineering stock?
ST Engineering currently pays a dividend. The latest interim dividend is S$0.04 per share for Q1 2025, with payment scheduled for June 3, 2025. For the full year 2025, the company plans to distribute a total dividend of S$0.18 per share, reflecting an upward trend and management’s new policy to increase dividends as profits grow. The dividend yield is about 2.66%, a solid return supported by a strong order book and healthy cash flows.
What is the forecast for ST Engineering stock in 2025, 2026, and 2027?
Based on current levels, the projected share price for ST Engineering is S$9.92 by end 2025, S$11.44 by end 2026, and S$15.26 by end 2027. These forecasts reflect the company’s robust revenue and profit growth strategy, continued expansion in its global order book, and strong momentum in the defense and smart technologies sectors. Analysts remain positive about the company’s ability to deliver steady value for shareholders.
Should I sell my ST Engineering shares?
Given ST Engineering’s solid fundamentals, growing dividends, and resilient business model, holding onto your shares could be considered a prudent approach for the mid- to long-term. The group benefits from strong government backing, a diversified portfolio, and an ambitious growth strategy, which supports ongoing value creation. While valuation is at a premium, ST Engineering’s proven track record and forward-looking initiatives suggest further upside for patient investors.
Are dividends from ST Engineering stock taxable for Singapore investors?
In Singapore, dividends paid by ST Engineering are tax-exempt for individual shareholders as they are paid out of tax-paid profits under the one-tier corporate tax system. No additional withholding tax is deducted from these dividends, making ST Engineering shares attractive for investors seeking tax-efficient income. This system helps maximize net returns from local investments.
What is the latest dividend for ST Engineering stock?
ST Engineering currently pays a dividend. The latest interim dividend is S$0.04 per share for Q1 2025, with payment scheduled for June 3, 2025. For the full year 2025, the company plans to distribute a total dividend of S$0.18 per share, reflecting an upward trend and management’s new policy to increase dividends as profits grow. The dividend yield is about 2.66%, a solid return supported by a strong order book and healthy cash flows.
What is the forecast for ST Engineering stock in 2025, 2026, and 2027?
Based on current levels, the projected share price for ST Engineering is S$9.92 by end 2025, S$11.44 by end 2026, and S$15.26 by end 2027. These forecasts reflect the company’s robust revenue and profit growth strategy, continued expansion in its global order book, and strong momentum in the defense and smart technologies sectors. Analysts remain positive about the company’s ability to deliver steady value for shareholders.
Should I sell my ST Engineering shares?
Given ST Engineering’s solid fundamentals, growing dividends, and resilient business model, holding onto your shares could be considered a prudent approach for the mid- to long-term. The group benefits from strong government backing, a diversified portfolio, and an ambitious growth strategy, which supports ongoing value creation. While valuation is at a premium, ST Engineering’s proven track record and forward-looking initiatives suggest further upside for patient investors.
Are dividends from ST Engineering stock taxable for Singapore investors?
In Singapore, dividends paid by ST Engineering are tax-exempt for individual shareholders as they are paid out of tax-paid profits under the one-tier corporate tax system. No additional withholding tax is deducted from these dividends, making ST Engineering shares attractive for investors seeking tax-efficient income. This system helps maximize net returns from local investments.
