The Silent Compounder - Why ST Engineering Deserves a Spot In Your Long Term Portfolio
πππIn a market often dazzled by flashy tech names and volatile meme stocks, ST Engineering $ST Engineering(S63.SI)$
Backed by Temasek Holdings which owns a commanding 51% stake, this Singaporean powerhouse blends defensive stability with forward looking innovation. With a strong dividend track record, a record breaking order book and bullish analysts, ST Engineering is more than just a blue chip. It is a strategic anchor for long term investors like me.
Why ST Engineering Still Looks Undervalued
Q1 FY2025 was a strong start to the year, with revenue up 8% year over year to SGD 2.9 billion. Defence and Public Security was the strongest sector with an increase of 18% year over year to SGD 1.32 billion. Commercial Aerospace was flat at SGD 1.15 billion as strong engine MRO demand was largely counterbalanced by lower passenger to freight revenue. Urban Solutions and Satcom division grew by 4% year over year to SGD 446 million.
ST Engineering secured new contracts in Q1 25 worth SGD 4.4 billion, pushing the order book to SGD 29.8 billion with SGD 7.3 billion to be delivered in 2025. This is almost 3 years worth of projected revenue.
Temasek's Endorsement
Temasek's 51% majority stake isn't just symbolic. It reflects alignment with national priorities in Defence, Aerospace and Smart Infrastructure.
Reliable Dividend Stream
ST Engineering declared 4 cents per share interim dividend in Q1 25 which is consistent with previous years. The current dividend yield is 2.17% which offers steady income stream together with capital appreciation.
Analysts Sentiment Remains Bullish
Average Target Price is SGD 8.19, an upside potential of 4%. RHB, Nomura and Macquarie maintain Buy ratings, citing strong earnings visibility and margin expansion.
Growth Catalysts
From AI enabled defence systems to smart mobility infrastructure and global MRO contracts, ST Engineering is riding multiple megatrends and is well positioned at the intersection of security, sustainability and digital transformation.
Concluding Thoughts
ST Engineering isn't just a dividend stock. It is a strategy compounder with Temasek's strong backing, a fortress like balance sheet and a future proof business model. With a strong Q125, a SGD 29.8 billion order book and exposure to global defence and infrastructures cycles, ST Engineering is a stock that rewards patience, not hype. For investors seeking resilience, yield, and innovation in one stock, ST Engineering deserves a permanent seat in your portfolio.
Go Long Go Strong Go ST Engineering π₯°π₯°π₯°ππππππππππ°π°π°πΈπ¬πΈπ¬πΈπ¬
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- Kristina_Β·06-30TOPDidnβt expect to get so bullish on an aerospace-defense name, but wow β ST Eng really blends tech with real-world impact. Love the smart mobility and AI defense angle. Quiet compounder vibes! ππ§1Report
- AL_IshanΒ·06-30TOPNot gonna lie, this ainβt my usual hype play, but ST Eng looks kinda slept onβ¦ 29B order book? Temasek backing? Might need to YOLO a few for the long game ππ¦1Report
- JimmyHuaΒ·06-30This is exactly the kind of stock I like β stable, backed by Temasek, good dividend, and long-term visibility. ST Engineering definitely feels like a core portfolio holding. π‘οΈπLikeReport
- δΈζ»ιΈ.Β·06-30θ°’θ°’εδΊ«1Report