Singapore, Jan 15, 2026, 15:52 SGT — Regular session
- Shares of ST Engineering climbed in afternoon trading following DBS’s decision to raise its target price and maintain a “buy” rating
- Broker highlighted more stable earnings from upstream aviation services and defence-related companies
- Investors are eyeing next month’s catalysts, including news linked to the Singapore Airshow
Shares of Singapore Technologies Engineering Ltd, or ST Engineering, climbed Thursday following a target price boost from DBS Group Research. The firm highlighted stronger visibility in defence and aviation services compared to airlines, as the post-pandemic travel rebound settles.
By 3:37 p.m. local time, shares climbed 1.4% to S$9.52, flirting with the day’s peak at S$9.54. Trading volume reached roughly 3.6 million shares, data from ShareInvestor shows.
This shift is significant as investors rotate within Singapore’s aviation sector, looking for more stable cash flows. Airlines are under pressure from falling ticket yields, even as demand for maintenance remains strong due to postponed aircraft deliveries.
The spotlight returns to ST Engineering’s business mix: defence, which often tracks government spending, and aerospace, driven by steady income from maintenance — the essential tasks that keep aircraft in the air.
DBS bumped its target price on ST Engineering to S$10.20 from S$9.40, keeping a “buy” call in place, analysts Jason Sum and Tabitha Foo said. They also raised their target on SATS but downgraded SIA Engineering to “hold.” The pair singled out upstream defence and maintenance firms as “clearer winners,” noting that ST Engineering and SATS show “superior” earnings visibility compared to airlines. The Business Times
Analysts highlighted supply bottlenecks and delivery lags, forcing older aircraft to stay in operation longer. This trend ramps up maintenance needs and boosts demand for maintenance, repair, and overhaul work, commonly known as MRO.
ST Engineering, a key Singapore-listed industrial firm, operates across defence and public security, commercial aerospace, and urban solutions. It’s also a significant constituent of the Straits Times Index.
In its latest quarterly update, the group revealed an order book totaling S$32.6 billion at the end of September, ensuring a solid backlog of contracted projects despite ongoing debate over the direction of global growth.
That said, the outlook isn’t one-directional. If new aircraft deliveries accelerate beyond expectations, fleet renewals might happen sooner, cutting into the boost from heavy maintenance. Defence spending, typically steady but not invulnerable, could also ease up if budget priorities change.
The next major trigger will be the company’s full-year 2025 results, usually released in February. ST Engineering also plans to provide updates on dividend payments and the speed of new contract awards then.
Traders are keeping an eye on the Singapore Airshow in early February. ST Engineering plans to showcase its products there and could highlight pipeline demand in aerospace and defence.
