Shares of Singapore Technologies Engineering Ltd. reached an unprecedented high on Monday, climbing 4.5% to S$10.15 and breaking the S$10 barrier for the first time. The rally elevated the company's market capitalization to approximately S$31.6 billion.
Airshow Deals Fuel the Rally
The surge follows a wave of announcements from the recently concluded Singapore Airshow. Key deals included a multi-year maintenance, repair, and overhaul (MRO) agreement with Xiamen Airlines for its CFM LEAP-1A engines and a memorandum of understanding with Airbus Defence and Space for an A330 MRTT+ aircraft cabin modification program. The company also highlighted the launch of an integrated airframe and nacelle MRO center in Singapore.
Expansion into New Mobility and Drones
Beyond traditional aerospace, the group's joint venture, ST Engineering AirX, secured agreements to deploy its AirFish Voyager ground-effect vehicle on ferry routes in Southeast Asia and India. On the unmanned front, the company showcased its all-electric DrN-600 cargo drone and revealed plans to integrate Shield AI's "Hivemind" autonomy software into its systems.
Analyst sentiment remains positive, with RHB Bank reiterating a "buy" rating and raising its price target to S$10.70, citing record contract wins for 2025. However, management cautioned that persistent global supply chain shortages for aerospace components, with lead times stretching up to a year, could pressure schedules and margins.
Market attention now shifts to the company's financial results. ST Engineering is scheduled to release its second-half and full-year 2025 earnings before the market opens on February 27, with an analyst call set for 11:00 a.m. Singapore time. Investors will scrutinize order flow, margin details, and delivery timelines to assess if the stock can sustain its newfound level above S$10.
