ST Engineering

[yeh]

Even at this price, I find it overvalued.

At current price, it's at a PE close to 20. If the next few quarters continue to report similar profit levels, PE will creep further up, and there could be more selling. Personally, I would not consider entering until it reaches sub $3 levels.

However, if you're a mid-to-long term investor of this counter, there are still many reasons not to panic:
1) Stable dividend yield. STE has been generating sufficient FCF to sustain it's 4% dividend per year. Even as it is reducing its payout going forward, this is still a good reason to hold.
2) Niche industry. Defense is always a necessity and with MINDEF taking up a significant % of its business (less than 50%) and defense budget continually increasing, it is still sustainable. Having said that, my worry is that STE is not able to keep up with the latest defense tech.
3) Backed by TH. TH also added more to their holdings in STE, as pointed out by some of you.

my concern also high PE, so that is why i decide to hold on my buying.

i did not sell as i agree on your 3 points