ST Engineering Likely to Benefit From Proposed Stake Divestment in Joint Venture
Dow Jones
Jul 21, 2025
Singapore Technologies Engineering is likely to benefit from its proposed divestment of a 51% stake in its joint venture with Singapore Power, RHB Research's Shekhar Jaiswal says in a report.
The proceeds will help reduce the technology, defense and engineering group's debt and slightly boost its earnings, the analyst says.
ST Engineering's planned stake divestment amounts to an estimated S$148 million, and will probably lead to one-off gain of around S$83 million.
Meanwhile, the company's record-high order book ensures strong revenue visibility, supported by structural tailwinds such as rising defense spending.
RHB raises the stock's target price to S$8.70 from S$8.65 with an unchanged buy rating.
Shares are 0.2% higher at S$8.42.
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