Shares of ST Engineering (S63.SI) surged 4.87% during Wednesday's trading session, following the announcement of a significant $1.4 billion contract win for the new Taichung MRT Blue Line in Taiwan. The contract, which involves providing turnkey rail services, marks a major expansion of the company's already strong presence in the Taiwanese rail sector.

The 14-year project is scheduled to commence in the second quarter of 2025, further solidifying ST Engineering's position in the international rail market. This latest achievement adds to the company's impressive track record in securing large-scale, long-term contracts, demonstrating its competitive edge in the global infrastructure and engineering services industry.

In light of this development, Shekhar Jaiswal, an analyst at RHB Bank Singapore, has reiterated his "buy" recommendation for ST Engineering, maintaining a target price of $7.80. The analyst's bullish stance is further supported by the company's robust order book, which stands at an all-time high of $28.5 billion, providing revenue visibility for the next three years. This combination of new contract wins and a strong existing order book paints a promising picture for ST Engineering's future growth and profitability.