Broker: Maybank Research Pte Ltd
Date of Report: May 19, 2026

Excerpt from Maybank Research report.

Report Summary: ST Engineering (STE SP)

• Action: BUY
• Target Price: SGD 12.50 (16% upside from SGD 10.79)
• Highlights:
  • STE reported strong 1Q revenue growth of 11% YoY to SGD3,257m, with all business segments contributing positively.
  • Order book reached SGD34.5b (+16% YoY), providing strong revenue visibility. 1Q contract wins were SGD4.8b, maintaining momentum across segments.
  • Net profit growth outpaced revenue, indicating margin expansion; 1Q figures are tracking well to full-year estimates.
  • STE’s exposure to structural growth drivers (defence, urban solutions, commercial aerospace, AI) and solid execution support the BUY call.
  • Interim dividend maintained at SGD4c per share. Impact from Middle East conflict is currently assessed as immaterial.
  • Key Risks: Slowdown in orders, margin moderation in commercial aerospace, slower SATCOM turnaround, or dilutive M&As.
• Implications:
  • STE offers strong earnings visibility and benefits from structural tailwinds in defence and urban solutions. The order book and net profit trajectory support the current BUY rating and target price.
  • Maintain SOTP-based TP of SGD12.50 with 15% PATMI CAGR expected from 2025-2028.

Ticker: STE SP

above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website : https://www.maybank.com/investment-banking