πŸ›« ST Engineering Sell-Off: Opportunity Below $8?

Isleigh
08-19

ST Engineering slid 6.3% despite reporting a +19.7% rise in 1H25 net profit (S$402.8m vs S$336.5m YoY). The pullback comes after an 80% YTD rally, leaving investors asking: is this just profit-taking, or is valuation stretched?

πŸ”Ž Macro Factors

1. US Tariffs & FX Headwinds β€” Dragging on margins despite strong topline growth.

2. Global Aerospace Cycle β€” Strong demand recovery in commercial aerospace supports order book.

3. Defence Spending β€” Rising geopolitical tensions continue to anchor long-term revenue stability.

πŸ“Š Micro Factors & Levels

Cureent Price: just above S$8.00

Support Zones: S$7.80 (short-term floor), S$7.50 (major support).

Resistance Zones: S$8.40 (near-term cap), S$8.80 (breakout point).

Valuation: P/E remains elevated vs historical average, but earnings momentum justifies part of the premium.

🎯 Prediction

Bullish Case: Hold >S$8 β†’ rebound to S$8.40–8.80, especially if aerospace momentum continues.

Neutral Case: Consolidation between S$7.80–S$8.20 as market digests YTD surge.

Bearish Case: Break <S$7.80 β†’ correction risk to S$7.50.

βœ… Takeaway

This pullback looks more like a healthy reset after an 80% run rather than a fundamental breakdown. Bargain hunters may step in under S$8, but sustained upside will require proof that earnings growth can outpace cost and tariff risks.

I'm not a financial advisor. Trade wisely, Comrades!

# SG Movers: ST Engineering & iFast 😭 Buy the Dip or Stay Away?

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Comment（5οΌ‰

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  • Athena Spenser
    Β·08-20
    S$8 is tempting! If it hits S$7.80, might grab some on the dip.
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  • Megan Barnard
    Β·08-19
    Buy under $8, but set stop at $7.80 to limit risk.
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  • Maurice Bertie
    Β·08-20
    80% YTD rally? No surprise,profit-taking makes total sense here.
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  • zingzy
    Β·08-19
    Great insights into the market trends! πŸ‘
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  • Porter Harry
    Β·08-19
    Thanks for sharing its information.πŸ‘
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