Is ST Engineering stock a buy after the latest results?

It depends on your risk profile. Operating trends are improving and the Qatar win supports backlog, but valuation is rich and leverage is notable. Meyka’s grade is B+ (BUY), while another model is Neutral. Watch cash conversion, margins, and new orders before adding on weakness.

What caused the 83.6% drop in H2 profit?

Management cited one-off impairments that hit net profit. Excluding these, operating profit rose 22.5%, indicating core improvement. The market is weighing cleaner operations against headline figures, which explains pressure on the share even as fundamentals in key businesses improved.

What is the significance of the Qatar MRO contract?

The five-year, EUR 315 million Qatar MRO contract adds multi-year revenue visibility and deepens Middle East defence ties. It should support backlog and resource planning, helping smooth earnings variability. Successful execution can underpin sentiment and provide a counterbalance to recent one-off earnings noise.

What is the outlook for the ST Engineering dividend?

The board proposed a final and special dividend with results. Trailing DPS is about S$0.17, a 1.70% yield at today’s price. Future increases likely hinge on free cash flow strength, given a payout ratio near 69%. Watch guidance on sustainable coverage and any changes to policy.

What risks should Singapore investors watch now?

Key risks are valuation sensitivity, leverage (around 3.02x net debt/EBITDA), and cash conversion given elevated DSO. Project execution and integration also matter as the order book grows. A slowdown in new wins or margin pressure could challenge the premium multiple in the near term.

Global Market Insights

S63.SI Stock Today: February 28 – Profit Plunge, EUR 315m Qatar Win

ByHuzaifa Zahoor February 27, 2026February 27, 2026

ST Engineering stock dipped in Singapore on Feb 28, last traded at S$10.02 (-2.05%) as investors weighed a sharp half-year profit plunge and a fresh Qatar win. The group said H2 net profit fell 83.6% on one-off impairments, while operating profit and revenue grew. The board proposed a final and special dividend. A new EUR 315 million, five-year MRO contract in Qatar should back backlog and Middle East exposure. We break down price action, earnings quality, dividends, and what this means for S63.SI holders.