SIA Engineering

Re: SIA Engineering

Postby Musicwhiz » Mon Nov 21, 2011 6:04 pm

Dear all, Part 2 of my analysis and review for SIAEC's 1H 2012 results is now up on my blog. Please feel free to visit and leave comments, thanks! :D

A snippet as follows:-

"In Sep 2011, SIAEC signed a letter of intent (meaning they have not gone to the contractual agreement phase yet; this is similar to a Memorandum of Understanding in that it is not yet legally binding) with Messier-Bugatti-Dowty (another subsidiary of the SAFRAN Group) towards appointing SIAEC as an Authorized Service Centre (ARC) for carbon wheels and brakes. According to its website (http://www.safranmbd.com), Messier-Bugatti-Dowty (MBD) is the world leader in aircraft landing and braking systems and on-ground movement, partner to the world’s leading civil and military air-framers. Interestingly, on Sep 29, 2011, SIA had selected MBD to supply wheels and carbon brakes for its Airbus A350 XWB fleet. This may explain why SIAEC had signed an LOI with MBD for a potential setting up of an ARC."
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Re: SIA Engineering

Postby winston » Wed Feb 01, 2012 9:01 am

not vested

SIA Engineering, a unit of Singapore Airlines , said its third-quarter net profit rose 5.3 percent to S$63.5 million, helped by higher revenue from fleet management and an increase in airframe and component overhaul work.

Source: Reuters
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Re: SIA Engineering

Postby Musicwhiz » Fri Feb 03, 2012 12:54 am

3Q 2012 are out. Revenue increased +12.6% for 3Q 2012 to a new record high $303.4 million, but operating profit was dragged down -17.7% by higher costs. Share of profits from associates and JV saw a good increase of +20% to $40.7 million, and for 9M 2012 there was a +7% increase to $118.4 million. As a result, profit attributabloe to shareholders for 3Q 2012 increased +5.3% to $63.5 million.

More interestingly, however, are the cash flows (these are in the main announcement and not the press release). OCF for 3Q 2012 was $40.4 million against $71.7 million a year ago, while ICF was $24.8 million against last year's $39.0 million. FCF for 3Q 2012 was thus $$65.2 million against $110.7 million a year back. This would seem to indicate that there might be a potential cut in the final dividend due to lower cash flows? It is good to note that for FY 2011, a special dividend of 10 cents/share was paid in addition to 14 cents/share final dividend, as a result of the large surge in cash coming in. Without the large surge, and assuming the cash flows normalize for SIAEC, would it still be possible for them to at least maintain the 14 cents/share final dividend?

In my computations, I had estimated a potential cut of 20% for full-year dividend to 16 cents/share for conservatism. Thus, I project a final dividend of 10 cents/share. Based on the last closing price of $3.60 per share, this would represent a yield of 4.4%, which is still not shabby for a stable blue-chip company with no debt. If we assume no change in dividends from last year, the yield would jump to 5.6%. :D

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Re: SIA Engineering

Postby kennynah » Fri Feb 03, 2012 2:04 am

MW... you must be a very wealthy man...

at even 5.6%, it would make a significant difference if one has at least a few hundred grand on one dividend yielding position.

you rich man 8-)
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Re: SIA Engineering

Postby Chinaman » Fri Feb 03, 2012 12:02 pm

wow! SIA Engrg today flying....now touches 3.67.

hehe, tikum correctly..sold off smrt to buy sia engrg at 3.35...

I have to admit, not everyday so lucky.

vested
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Re: SIA Engineering

Postby kennynah » Fri Feb 03, 2012 8:26 pm

wow.... this CNY dua HUat ah bro C :!: :!: :lol: :lol:
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Re: SIA Engineering

Postby Musicwhiz » Fri Feb 03, 2012 10:45 pm

kennynah wrote:MW... you must be a very wealthy man...

at even 5.6%, it would make a significant difference if one has at least a few hundred grand on one dividend yielding position.

you rich man 8-)


LOL Kenny! No lah, I only have a small position in SIA Engineering. Back in mid-Jan 2012, I added a few more lots at $3.38 that's all.

Just hoping for a decent final dividend. :D

Cheers!
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Re: SIA Engineering

Postby Chinaman » Thu Mar 08, 2012 9:59 pm

Chinaman wrote:wow! SIA Engrg today flying....now touches 3.67.

hehe, tikum correctly..sold off smrt to buy sia engrg at 3.35...

I have to admit, not everyday so lucky.

vested

SIA ENGRG today flying again 2nd round; now touches 3.96 cts.....Heng Ah let go SMRT and switch to SIA Engrg...Lousy MRT this morning break down again I was stuck for abt 1/2 hr at bishan station. aro 8.15 am the crowd is frightening.

this time round, tikum correctly ..shd have buy more if above this guru give me confident opinion instead of replying dunno.

vested...small time
Last edited by Chinaman on Thu Mar 08, 2012 10:17 pm, edited 1 time in total.
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Re: SIA Engineering

Postby Musicwhiz » Thu Mar 08, 2012 10:17 pm

If assuming the final dividend is as per last year's 14 cents/share, full year dividend would thus be 20 cents/share which would represent a yield >5% at the current closing price of $3.96 per share. Even if dividend was cut to 10 cents/share for final, the yield would still be above 4% for a blue-chip company with no debt.

Recent corporate announcements in mid-Feb 2012 show that SIAEC is not resting on its laurels and is continually building up its business relationships and network; as well as its strong and growing stable of associated companies and joint ventures.

Let's wait for the FY 2012 results come early May 2012. :)
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Re: SIA Engineering

Postby Chinaman » Tue Mar 13, 2012 9:56 pm

Before the result is out, this ticker already flying above $4.00...today closed at $4.09.

Congrate to those bot earlier at 3.35...my TP is 4.30.

vested.
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