ST Engineering's stock surged 3.09% during intraday trading on Monday, driven by the release of robust first-quarter financial results and a positive analyst outlook for its commercial aerospace segment.
The technology, defense and engineering group reported an 11% year-on-year increase in revenue to SG$3.26 billion, with growth across all key business segments. The company secured new contracts worth SG$4.8 billion during the quarter, boosting its total order book to SG$34.5 billion as of March 31. Management also declared an interim dividend of 4 Singapore cents per share.
Analyst commentary highlighted the commercial aerospace segment as a particular bright spot, with revenue rising 15% year-on-year due to higher engine maintenance, repair and overhaul activities. DBS Group Research maintained a buy rating on the stock, citing limited financial exposure to the Middle East conflict and strong fundamentals. The firm's outlook remains positive as demand for new-generation engine services continues to grow.