ST Engineering's Strong Revenue Momentum Could Boost 2026 Profit
Dow Jones
Aug 13
0819 GMT - Singapore Technologies Engineering's strong revenue momentum and broad-based margin gains are likely to boost its 2026 profit, says DBS Group Research. The Singapore defense engineering company posted a 27% year-over-year gain in 1H net profit, above DBS's expectations, says analyst Jason Sum in a note. The company has strong 2H revenue visibility and margins will likely rise, given it could deliver 5.7 billion Singapore dollars of its order backlog in 2H, he says. While 2Q contract wins moderated to S$2.9 billion from S$4 billion-S$5 billion a quarter over the past six quarters, this likely reflects timing rather than softer underlying demand, he adds. DBS retains its buy rating and S$12.40 target price. Shares rise 0.2% to S$10.30.
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