To The Moon

🌟🌟🌟As Singapore celebrates SG60, marking 6 decades of independence, ingenuity and identity, I am launching a personal tribute to this milestone with a series of articles spotlighting the most compelling companies listed on the SGX.

If you are inspired to take part in this journey, there is no better time.  Tiger Brokers $Tiger Brokers(TIGR)$ is celebrating SG60 with a special promotion - from now until October 17, enjoy zero commission, zero custodian fees and stand a chance to win attractive prizes as you invest in Singapore's future.  It is a timely opportunity to align your portfolio with the spirit of SG60.

Please follow me to learn more about the companies that define Singapore's past, shape its present and inspire its future.

ST Engineering At A Crossroad :  Buy or Bye in the SG60 Spotlight?

When $ST Engineering(S63.SI)$  share price tumbles, emotions run high.  ST Engineering, a pillar of Singapore's technological and defence might, slid 12% in the past 5 days.  This is despite reporting a 20% jump in its first half profit.  Year todate, ST Engineering (STE) has soared 69% on hopes of a sustained momentum.  Now, against the backdrop of SG60, Singapore's 60th year of independence, investors ask : Is this the moment to double down on a home grown champion or to bid farewell?

What ST Engineering Does

ST Engineering is more than an engineer of machines, it engineers possibility.  As a global technology, defence and engineering group with headquarters in Singapore, its enterprises span:

Commercial Aerospace : the world's largest third party airframe maintenance, repair and overhaul (MRO) provider.

Defence and Public Security : land platforms, naval vessels, avionics, digital and cyber solutions. 

Urban Solutions and Satcom: Smart City platforms, satellite  communications and infrastructure modernisation.

Across these 3 segments, 27,000 employees apply innovation to keep aircrafts flying, cities humming and nations secure.

A History Forged in Nationhood

ST Engineering's roots trace back to 1967, when Singapore was barely 2 years into independence.  Chartered Industries of Singapore was formed to manufacture ammunition for the M16 rifle - a bold move to build sovereign defence capabilities.  Over the next decade, a constellation of companies emerged :

ST Marine in 1968: Shipbuilding and naval repair

ST Electronics in 1969: Electronic systems for the Singapore Armed Forces

ST Kinetics in 1971: Military Vehicle maintenance

ST Aerospace in 1975: Aircraft servicing and MRO

These pioneers weren't just businesses - they were nation builders.  In 1997 they merged to form ST Engineering, debuting on the SGX as a unified force.  From designing missile gunboats to building automation systems for Changi Airport, ST Engineering has grown alongside Singapore, reflecting its resilience, ambition and global ascent.

Performance Snapshot and Market Reaction

In the 6 months to June 2025, ST Engineering delivered:

Revenue of SGD 5.92 billion, up 7% year on year

EBIT rising 15% to SGD 602 million.

Net profit climbing 20% to SGD 403 million.

Yet shares fell to SGD 7.87 on Wednesday's trading, below the SGD 8.00 mark, a sharp reversal from its recent all time high of SGD 8.96.  The drop can be attributed to valuation concerns more than fundamentals, as investors digest how much growth is already priced in.

Analysts Weigh in: Buy or Bye?

Analysts offer mixed verdicts :

CGS International raised its target price to SGD 8.70, citing cost discipline but cautioning against valuation excess.

RHB lifted its target price to SGD 9.10, pointing to a record order book and resilient margins. 

Morningstar increased fair value by 21% to SGD 8.10, applauding SGD 100 million in cost savings and potential spin offs.

The consensus is that ST Engineering remains fundamentally strong but stretched valuations and macro uncertainties urge selectivity. 

ST Engineering in the SG60 Singapore Growth Story 

As Singapore marks 6 decades of nation building, ST Engineering stands as a living monument to its transformation :

From ammunition and shipyards to AI labs and smart city platforms. 

From serving the Singapore Armed Forces to winning global contracts across Aerospace, Defence and Infrastructure.

From necessity driven engineering to innovative led excellence. 

SG60 isn't just a milestone.  It is a mirror reflecting how Singapore companies like ST Engineering have powered Singapore's rise from swampy port to secure, connected and world class city state.

My Personal Chapter: 106% and Counting

I still remember the day I pressed "Buy" on ST Engineering at SGD 3.80, a quiet act of conviction.  Since then, my position has climbed 106%.  That gain isn't just financial.  It is symbolic.  It reflects my belief in disciplined growth, in backing companies that mirrors the values I hold dear: resilience, innovation and national pride.

Every percentage point gained feels like a tribute to Singapore's own journey.  ST Engineering isn't just a stock in my portfolio.  It is a story I have chosen to invest in.

Why I Hold ST Engineering Long Term

1.  Structural Tailwinds - Global defence spending and infrastructure modernisation provide a robust backdrop.

2.  Cash Generative Model - Strong margins and Disciplined Cost Management fuel dividends and buybacks.   The current dividend yield is 2.13%.

3.  Innovation Pipeline - AI, Robotics and Cybersecurity investments ensure future proof growth.

4.  National Champion Status - As Singapore enters its 60th year of independence, backing a home grown powerhouse feels both patriotic and pragmatic - a dual source of pride and purpose.

ST Engineering is a company built for decades, not quarters.  Its history is Singapore's history.  Its future I believe, will continue to echo Singapore's enduring spirit.

Concluding Thoughts : A Crossroad of Legacy and Opportunity

The recent dip may feel like a tremor but in that shake lies potential.  D$ST Engineering(S63.SI)$ 

rock solid fundamentals, diversified segments and proud SG narrative makes this more of a Buy than Bye.  For me, it is not just about the price.  It is about purpose of why I invest in ST Engineering.

As SG60 reminds us of Singapore's remarkable growth, I hold fast to my position in ST Engineering, ready for the next 106% and beyond.  In the dance between market noise and structural strength, I choose to hold on to ST Engineering with eyes fixed on the long term horizon, my heart aligned with a remarkable story still unfolding.

Go Long Go Strong Go ST Engineering! 😍😍😍🌈🌈🌈💰💰💰🇸🇬🇸🇬🇸🇬

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