For most companies, geopolitical conflicts are bad due to economic uncertainties, supply chain disruptions and negative consumer sentiments. But for ST Engineering, being a defense contractor, war is good as it benefits from global demand for its products – ammunition and armored platforms. Year-to-date, ST Engineering’s share price is up 34% to $11.27. Last time I covered ST Engineering share price in August 2019. At that time, the counter was trading around $4. Fast forward six years, few investors could have predicted this ST Engineering’s share price will increase by almost 3 times. After all, ST Engineering share price is known to be a very defensive stock with very low volatility. In fact, the 5-year beta is only 0.57 compared to DBS’s 1.17. Given the historically low volatility of the ST Engineering share price, the explosive rally over the past 2 years is truly unusual. In this article, I will share my views on the potential factors driving this structural change in the ST Engineering share price…
