Core Insights - Stocks at 52-week highs can indicate improving business fundamentals or be driven by market momentum, necessitating a verification of underlying fundamentals [2] Group 1: ST Engineering Ltd (STE) - STE is trading near fresh highs at approximately S$10.90 per share, driven by increased defense spending due to recent geopolitical conflicts [3] - The company has experienced a compound annual growth rate (CAGR) of 11.5% in revenue over the past five years [3] - For FY2025, STE reported a 9% year-on-year revenue growth and a 21% increase in base operating performance (BOP) net profit, supported by improved margins and lower finance costs [4] Group 2: DBS Group Holdings - DBS has maintained a strong dividend policy, declaring total dividends of S$3.06 per share for FY2025, a 38% increase year-on-year, yielding 5.6% [5] - The bank's financial health is reflected in its non-performing loan ratio of 1.0% and common equity tier 1 ratio of 15% as of 31 December 2025, allowing for sustainable dividend growth [6] - DBS's share price has been stable around S$55 per share, supported by consistent dividend payments [7] Group 3: Singapore Telecommunications Limited (Singtel) - Singtel's underlying net profit grew by 9.5% year-on-year to S$744 million for the third quarter ended 31 December 2025, aided by a 15.4% increase in contributions from regional associates [8] - Despite a 9.7% decline in Singapore's operating profit, overall EBIT rose by 5.3%, driven by significant growth from NCS (32%) and Optus (27%) [9] - Singtel is expanding into AI with new data centers, which are expected to enhance earnings growth, alongside the rollout of the TPG regional sharing deal with Optus [9][10]