Shares of ST Engineering (S63.SI) are soaring 3.02% in early trading on Thursday, following the announcement of a significant contract win for the company's urban solutions business. The stock's upward movement comes as investors react positively to the news of a S$1.4 billion deal to provide turnkey rail services for the new Taichung mass rapid transit Blue Line in Taiwan.

According to the company's statement, the contract covers a period of approximately 14 years and is expected to commence in the second quarter of 2025. This long-term agreement not only provides ST Engineering with a substantial revenue stream but also reinforces its position as a key player in the urban transportation solutions sector.

The sizeable contract win is likely seen by investors as a strong indicator of ST Engineering's competitive edge in the global urban solutions market. It also highlights the company's ability to secure large-scale, long-term projects, which could potentially lead to improved financial performance and stability in the coming years. As the market digests this positive development, traders appear to be reevaluating the stock's value, driving the share price higher.

ST Engineering Soars 5.4% at 1:52 pm, Apr 10th.