SIA Engineering

Re: SIA Engineering

Postby behappyalways » Sat Nov 10, 2018 5:58 pm

SIA Engineering reports 1.6% lower 2Q earnings of $38 mil on revenue decline
https://www.theedgesingapore.com/sia-en ... ue-decline
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Re: SIA Engineering

Postby behappyalways » Sat Feb 09, 2019 1:23 pm

SIA Engineering reports 40% lower 3Q earnings of $33 mil on one-off events
https://www.theedgesingapore.com/sia-en ... one-events
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Re: SIA Engineering

Postby behappyalways » Tue Apr 02, 2019 9:15 am

SIA Engineering, SIA sign new services agreement worth up to $1.4 bil
https://www.theedgesingapore.com/sia-en ... rth-14-bil
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Re: SIA Engineering

Postby behappyalways » Wed May 15, 2019 3:43 pm

SIA Engineering posts 12.3% drop in 4Q earnings to $49.3 mil; declares 8 cents final dividend
https://www.theedgesingapore.com/sia-en ... l-dividend
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Re: SIA Engineering

Postby winston » Mon Jul 15, 2019 8:29 am

not vested

July 5, 2019

No smoke without fire

SIA Engineering’s share price spike seems to be indicating the possibility of privatisation by parent SIA

M&A/privatisation activities have gained momentum of late in the Singapore market

SIA has enough firepower to effect the deal, which should be accretive to SIA at the right price

Upgrade SIA Engineering stock to BUY with a revised TP of S$3.01, after factoring in
privatisation premium

SIA currently has close to 78% stake in its MRO unit and the benefits of keeping SIA Engineering listed is not entirely apparent, given the low liquidity of the stock.

It can be argued that it is important for SIA Engineering to retain the perception of being an independent MRO provider as it has to bid for work from other airlines in addition to parent airline jobs. Roughly 40% of SIA Engineering’s revenue is driven by non SIA customers.

Our best estimate is that the premium would be roughly 10-30% above last close, which would imply an offer price of between S$2.75 and S$3.26 per share.

Current valuations for SIE are at multi-year lows at about 17x forward PE and dividend yield is healthy at close to 4.5%. Hence, downside risks are limited even if the privatisation does
not materialise.

It would cost SIA S$748m to privatise SIA Engineering at S$3.01 per share for the remaining shares it does not already own (22.2%). Assuming cost of debt of 3% and six months’ contribution in FYE Mar ’20, this would provide a marginal uplift of 1% to SIA’s FY20F
earnings and 2% to its FY21F earnings.


Source: DBS

https://researchwise.dbsvresearch.com/R ... =egcdbkhea
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Re: SIA Engineering

Postby behappyalways » Sun Jul 28, 2019 4:35 pm

SIA Engineering 1Q earnings up 2.7% at $41.6 mil on higher operating profit
https://www.theedgesingapore.com/capita ... ing-profit
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Re: SIA Engineering

Postby winston » Mon Jul 29, 2019 11:36 am

not vested

SIA Engineering (SIE SP) : BUY
Mkt. Cap: US$2,165m I 3m Avg. Daily Val: US$1.6m
Last Traded Price ( 26 Jul 2019): S$2.65
Price Target 12-mth: S$3.01 (14% upside)

Encouraging margin trends

1QFY20 earnings in line with expectations

Core EBIT margins holding up better than expected, could prompt earnings upgrades if sustained

Privatisation prospects back in focus recently, should support share price momentum

Maintain BUY with TP of S$3.01

Source: DBS

https://researchwise.dbsvresearch.com/R ... =eghgekhab
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: SIA Engineering

Postby winston » Tue Dec 10, 2019 1:12 pm

not vested

Maintain BUY with higher TP of S$3.30

SIA Engineering (SIE)’s core operations had another strong showing in 2Q20, with core operating margins at the highest level since 4Q17.

Going forward, we see several promising earnings drivers like:
i) further expansion in SIE’s core operating margin, bolstered by cost-cutting initiatives and progress in its transformation programme,
ii) increased workload at its engine shops owing to persistent problems with the Trent-1000 engines,
iii) recovery in associate/ JV profits from the low in 1HFY20 as startup costs related to new engine capabilities have mostly been already accounted for and
iv) a boost in maintenance work volumes due to delays in retiring older aircraft following the protracted global grounding of the B737 MAX aircraft.

While privatisation remains a crucial catalyst for the stock, the current valuation for SIE is attractive at close to multi-year lows at about 17x forward PE and dividend yield is healthy at 4.3%.

Source: DBS

https://www.dbs.com.sg/treasures/aics/t ... SIE_SP.xml
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Re: SIA Engineering

Postby winston » Fri Dec 13, 2019 10:35 am

not vested

SIA Engineering ($2.81, up 1 cent) and Safran Aircraft Engines have signed an agreement on the 13th of December for SIAEC to provide engine maintenance services to Safran Aircraft Engines.

The 10-year agreement encompasses engine Quick Turn (QT) and modification embodiment services for both CFM LEAP-1A and LEAP-1B engines.

The facility is expected to commence operations in 2020.

At $2.81, mkt cap stands at $3.16bn, P/E is at 18.5x, P/B is at 2.05x, dividend payout ratio is 76.5% and dividend yield is 3.9%. They are in a net cash position where net cash to mkt cap is at 12.0%.

Source: Lim & Tan
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Re: SIA Engineering

Postby winston » Tue Feb 11, 2020 10:12 am

not vested

SIA Engineering: Coronavirus casts shadow over travel demand

SIA Engineering Company (SIAEC)’s 3QFY20 results came in above expectations.

PATMI was up 63.1% YoY to S$54.0m, thanks to tax provisions and stronger performance by the parent company, and partially offset by weaker performance by the subsidiary companies.

With the outbreak of coronavirus, sentiment has turned decisively cautious and this is likely to be followed by a rapid decline in air travel demand.

Taking SARS as an example, visitor arrivals to Singapore fell 19.0% YoY in 2003 while the number of flights arrival at Changi Airport was down 12% YoY.

This impacted travel demand and airlines scaled back flights and grounded aircraft which in turn weighed heavily on SIAEC’s airframe (-21% YoY in FY03 revenue), and line maintenance and technical ground handling (-25% YoY in FY03 revenue) business.

Taking into account the potential impact of a SARS-like coronavirus crisis, we revise our forecast for airframe and line maintenance down 10%/15% for FY20 and FY21, respectively.

After adjustments, our fair value estimate decreases from S$2.86 to S$2.41.

We hence downgrade SIAEC from Hold to SELL.

Source: OCBC
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