3 Singapore Blue-Chip Stocks Whose Share Prices Plunged After Earnings: Are They Worth a Closer Look?

Wed, 27 Aug 2025, 7:30 pm 5 min read

Blue-chip stocks are well-known for their stability, resilience, and long track records.

That said, they are still businesses that are subject to occasional challenges and should be carefully assessed by prudent investors who are vigilant for any risks.

Recently, we identified three blue-chip stocks whose share prices fell sharply upon the release of their latest earnings and business updates.

Investors may wonder if this event represents a buying opportunity.

Let’s review this trio of companies to determine if they deserve a second look.

Singapore Technologies Engineering, or STE, is an engineering and technology group serving customers in the aerospace, smart city, defence, and public security sectors.

The group released its first half of 2025 (1H 2025) earnings in the morning of 14 August, which promptly saw its share price plunge 6.3% from its all-time high of S$8.93 to S$8.40.

By 25 August, shares of STE were down 12.7% since 13 August.

STE’s results, though, were strong.

Revenue rose 7.2% year on year to S$5.9 billion, while operating profit increased by 15.2% year on year to S$602.2 million.

Net profit stood at S$402.8 million, up 19.7% year on year.

An interim dividend of S$0.04 was declared for the second quarter of 2025 (2Q 2025), taking the total dividend for 1H 2025 to S$0.08, unchanged from a year ago.

The engineering giant also announced healthy contract wins of S$9.1 billion for 1H 2025, with the Defence & Public Security division taking on the bulk of these new wins at S$4.2 billion.

These contracts pushed STE’s order book to a high of S$31.2 billion as of 30 June 2025, with S$5 billion expected to be delivered for the remainder of this year.

Investors should be impressed by these results, so why did the share price plunge?

One reason could be STE’s valuation, which has hit levels not seen in years.

As can be seen above, STE’s average price-to-earnings (P/E) ratio over the last decade was around 22 times.

At S$8.96, shares of STE were trading at a forward P/E ratio of 34.6 times based on the annualised 1H 2025 earnings per share.

STE released its Investor Day targets earlier this year and is also looking at raising its annual dividend from S$0.17 to S$0.18 this year.

The group also implemented a progressive dividend policy from 2026 onwards, which will see an incremental dividend declared equivalent to one-third of the year-on-year increase in net profit.

Sembcorp Industries, or SCI, is an energy and urban solutions provider.

The group has a balanced energy portfolio of 27 GW and urban development projects that span 14,800 hectares across Asia.