Broker Name: CGS International
Date of Report: January 26, 2026

Excerpt from CGS International report.

Report Summary

• ST Engineering (STE) secured a significant contract from Singapore’s Ministry of Defence for Terrex s5 Infantry Fighting Vehicles, estimated at S\$1–2bn, boosting its order book and earnings visibility beyond 2028.
• FY25F order wins could reach a record S\$19–20bn, with strong 2H25F profit and margin improvements anticipated, driven by aerospace and defence contracts.
• Target price raised to S\$10.20, based on higher valuation multiples due to STE’s scarcity premium, robust order pipeline, and improved ESG ratings, with potential catalysts from international contracts.
• STE demonstrates strong environmental performance, including a 25% reduction in emissions and improved ESG scores, further supporting its premium market valuation.
• Key risks include slower order wins, but overall the outlook remains positive with stable growth in revenue, profit, and free cash flow projected through FY27F.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com