CGS International Securities Pte. Ltd. April 14, 2025
Singapore Technologies Engineering Ltd – Uptrend Remains Intact
The Singapore retail research team at CGS International Securities Pte. Ltd. has released its latest Trendspotter report, highlighting Singapore Technologies Engineering Ltd (STE) as a top pick. In this article, we will delve into the details of the report and provide an in-depth analysis of STE’s current trend and future prospects.
Market Overview
The global markets have been experiencing a mix of emotions, with the S&P 500 jumping 1.8% on a report that a Federal Reserve official said the central bank is ready to help stabilize markets, if needed. However, volatility shows little signs of easing as concerns that President Donald Trump’s fast-evolving trade policy is not only shaking the global economy but threatening the US status as the world’s safe haven.
Singapore Technologies Engineering Ltd – Technical Buy
STE has been on an uptrend, and the current price action shows positive action. The stock has completed its small double top formation from 20 Mar to 1 Apr after rebounding from its 1:1 target support level at S$6.10.
Entry Price(s): S$6.67, S$6.40, S$6.10
Support1: S$6.41
Support2: S$5.83
Stop Loss: S$5.92
Resistance1: S$6.92
Resistance2: S$7.61
Target Price1: S$7.02
Target Price2: S$7.61
Target Price3: S$8.00
Target Price4: S$8.70
Company Description
Singapore Technologies Engineering Ltd is a global technology, defence, and engineering group. The Company uses technology and innovation to solve problems and improve lives through its diverse portfolio of businesses across the aerospace, smart city, defence, and public security segments. ST Engineering serves clients worldwide.
Technical Snapshot
STE has reached beyond the final TP of S$6.12 based on the previous trendspotter dated 4 Feb 24. With the price action showing positive action, the team is re-initiating a technical buy on STE.
Key Pointers:
STE has completed its small double top formation from 20 Mar to 1 Apr after rebounding from its 1:1 target support level at S$6.10.
Stock managed to close and fill the bearish gap.
Prices are trending above all ichimoku indicators.
MACD histogram is positive, MACD/signal line has performed a crossover at the bottom.
Stochastic oscillator is rising.
23-period ROC remains elevated above the zero line.
China Technology – Handsets Higher iPhone Prices Could Dampen Demand
The US’s recent reciprocal tariffs will significantly disrupt the smartphone supply chain, raise iPhone prices, and weaken consumer power.
Losers: Apple and its suppliers on reduced iPhone shipments and profitability.
Winners: Xiaomi and Chinese OEM suppliers, in our view.
Analyst and Company Disclosures
Analyst: CHUA Wei Ren, CMT
Contact: T (65) 6210 8612, E weiren.chua@cgsi.com
Important Disclosures
The content of this report has been prepared by and belongs to CGS International. Reports relating to a specific geographical area are produced and distributed by the corresponding CGS International entity.
CGS International Entities:
Hong Kong: CGS International Securities Hong Kong Limited
Indonesia: PT CGS International Sekuritas Indonesia
Malaysia: CGS International Securities Malaysia Sdn. Bhd.
Singapore: CGS International Securities Singapore Pte. Ltd.
South Korea: CGS International Securities Hong Kong Limited, Korea Branch
Thailand: CGS International Securities (Thailand) Co. Ltd.
Regulatory Disclosures
Australia: This research is provided in Australia by CGS International Securities Singapore Pte. Ltd. (“CGS SG”) and CGS International Securities Hong Kong Limited (“CGS HK”).
Canada: This research report has not been prepared in accordance with the disclosure requirements of Dealer Member Rule 3400 – Research Restrictions and Disclosure Requirements of the Investment Industry Regulatory Organization of Canada.
China: For the purpose of this report, the People’s Republic of China (“PRC”) does not include the Hong Kong Special Administrative Region, the Macau Special Administrative Region or Taiwan.
Distribution and Disclaimer
This publication is strictly confidential and is for private circulation only. If you have not been sent this report by CGS SG directly, you may not rely, use or disclose to anyone else this report or its contents.
Country Ratings Definition:
Overweight: Investors should be positioned with an above-market weight in this country relative to benchmark.
Neutral: Investors should be positioned with a neutral weight in this country relative to benchmark.
Underweight: Investors should be positioned with a below-market weight in this country relative to benchmark.
Recommendation Framework
Stock Ratings Definition:
Add: The stock’s total return is expected to exceed 10% over the next 12 months.
Hold: The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.
Reduce: The stock’s total return is expected to fall below 0% or more over the next 12 months.
Rating Distribution
Rating Distribution (%):
Add: 71.0%
Hold: 20.9%
Reduce: 8.2%
Investment Banking Clients
Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2025: 551 companies under coverage for quarter ended on 31 March 2025 7
