I bought into $ST Engineering (S63.SG)$ for its stability in a sector which is not very affected from the pandemic as it is primarily a defence contractor with Mindef and involvement in aerospace and smart city innovation.
As we are entering pandemic stage, i see that border will be reopen hence when planes start to fly, money will be flowing in from its maintenance job as seen in contracts clinch with several airlines recently. I also see them trying to reinvent themselves through the route of smart techology - smart city projects, big data. Investment in such area will be the way forward as Singapore push through its digitalisation project. Government projects can also be won thus providing them with more cash generation.
Their pentration to other smart city projects can also be seen in their lastest acqusition of TransCore. Contracts won recently in Taiwan and Brazil show they are now expanding outwards and not just depending on only SG government projects.
I strongly believe at this current price, $ST Engineering (S63.SG)$ is still undervalued and there are more upward potential. In a longer term, i am looking at target price of $8. But mid term, i expecting a price range of 4.50 to 5.50 Short term, i will expect it to break $4.