SIA Engineering

[Musicwhiz]

Note: I am vested.

Business Times - 03 Nov 2010

SIAEC's Q2 profit up 8.8% at $66.5m

SIA Engineering Company (SIAEC) has posted a net profit of $66.5 million for its second quarter ended Sept 30, 2010, up 8.8 per cent from a year ago.

Revenue rose 11.7 per cent to $277.1 million, mainly due to an increase in airframe and component overhaul work, fleet management programme revenue and material usage. Earnings per share for the quarter increased 8 per cent to 6.11 cents.

The group has declared an interim dividend of six cents per share, an increase of one cent per share over last year's interim dividend.

SIAEC said that the share of profits from associated and joint venture companies increased 18.1 per cent to $37.8 million. This represented a contribution of 49.7 per cent to the group's pre-tax profits.

The group posted an operating profit of $34.4 million for the second quarter, a decline of 2 per cent compared to the previous quarter, which had the benefit of the jobs credit scheme, it said.

Expenditure saw an increase of $29.7 million or 13.9 per cent to $242.7 million, mainly caused by higher sub-contracting, staff and material costs.

For the first half ended Sept 30, 2010, SIAEC's net profit was up 29.3 per cent at $137.3 million. Revenue came to $565.4 million, 14.8 per cent higher.

Looking ahead, SIAEC said: 'Given the strong performance in the first half, the group's performance in the second half is expected to moderate.'

The group has no borrowings and its cash balance as at Sept 30, 2010 amounted to $406.7 million.

[Musicwhiz]

For info: this is SIAEC's 25th Joint Venture.

SIAEC in MRO JV with Panasonic Avionics

SIA Engineering Company Limited (SIAEC) announced on Thursday that it has signed a joint venture agreement with Panasonic Avionics Corporation to set up a Singapore-based facility for the maintenance, repair and overhaul (MRO) of in-flight entertainment and communications (IFEC) systems and components produced by Panasonic Avionics.

Under the agreement, SIAEC will hold a 42.5 per cent equity shareholding in the joint venture, with the remaining 57.5 per cent owned by Panasonic Avionics Corporation.

The joint venture will meet the growing demand for IFEC support of new-generation aircraft. Strategically located in Singapore, the state-of-the-art facility will enable airlines in the Asia-Pacific to benefit from one-stop total solutions and OEM support.

[Musicwhiz]

Dear all, Part 5 (final part) of my Analysis of Purchase for SIA Engineering is now up on my blog! Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"SIAEC has a long history of aggressively pursuing and concluding joint venture arrangements with internationally renowned partners; with Safran Group being the latest addition, as well as Gulf Technics of Bahrain. It will be fair to assume that Management will continue to focus on developing and extending their reach through such lucrative arrangements into the mid-term, as it allows them to grow and expand without high capex requirements."

[Musicwhiz]

Business Times - 27 Nov 2010

SIAEC-Vietnamese venture starts ops

By VEN SREENIVASAN

SIA Engineering Company (SIAEC) yesterday announced the official opening of its sixth overseas line maintenance joint venture (JV) - at Ho Chi Minh City's Tan Son Nhat International Airport, the largest and busiest airport in Vietnam.

The JV company - Southern Airports Aircraft Maintenance Services Co (SAAM) - is 49 per cent owned by SIAEC and 51 per cent by Southern Airports Corporation (SAC), a state-owned enterprise under Vietnam's Ministry of Transport.

SAC operates nine international and domestic airports in the south of Vietnam. Its subsidiary Saigon Ground Services (SAGS) is the dominant ground-handling service provider at Tan Son Nhat International Airport, with a market share of more than 50 per cent.

SAAM started operating this month, servicing a strong base load of nine airlines - Singapore Airlines (SIA), Cathay Pacific, United Airlines, All Nippon Airways, Qatar Airways, Turkish Airlines, Philippine Airlines, Cardig Air and Neptune Airlines.

SAAM has taken off well, said SIAEC chief executive William Tan. 'This joint venture will raise the bar for line maintenance services in Vietnam, and is poised to expand its customer base and service offerings at Tan Son Nhat Airport.'

SAGS director Nguyen Dinh Hung said SIAEC was chosen as a JV partner because of its experience and excellent track record.

'The JV will enhance the level of airline support provided at the airport, giving added confidence to the 40-plus international airlines and domestic airlines flying here,' he said.

The new line maintenance facility extends SIAEC's global network of such stations - which covers more than 20 airports in Singapore, Australia, Hong Kong, the US, the Philippines, Indonesia and Vietnam. The network across these seven countries handles about 800 flights daily around the clock for more than 60 airlines.

SIAEC said the start of the Ho Chi Minh operations is not expected to have a material impact on its financial performance in FY2010/11.

The company has a client base of more than 80 international carriers and aerospace equipment manufacturers, and provides line maintenance services at Changi Airport for more than 50 international carriers, as well as air-frame and component overhaul work on some of the world's most advanced and widely used commercial aircraft. It achieved a revenue of more than $1 billion in FY2009/10.

[winston]

Not vested

SIA Engineering, a unit of Singapore Airlines , said on Thursday it has signed a five-year services agreement with SilkAir worth S$300 million.


Source: Reuters

[winston]

Not vested

SIA Engineering , a unit of Singapore Airlines , may be in focus after it said fourth quarter net profit fell 17.6 percent from the year-ago period, when it had benefited from a gain on fixed asset disposal, tax provision write-backs and jobs credit.


Source: Reuters

[Musicwhiz]

Dear all, my analysis and review of SIAEC's FY 2011 Financials is now up on my blog. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"EPS is 23.89 cents/share and the company is valued at a historical PER of about 17x. ROE is higher at 19.8% compared to 18.7% a year ago, and this was largely achieved through the use of low and minimal debt on its Balance Sheet."

[winston]

Not vested

SIA Engineering said its first-quarter net profit fell 3.8 percent to S$68.1 million from S$70.8 million a year ago, weighed by a fall in revenue from materials.


Source: Reuters

[winston]

not vested

SIA Engineering. No major surprise from core maintenance operations but 2Q11 earnings were helped by S$3m tax write-back and S$7m hedging gains.

We see limited upside for SIE as aviation recovery could be hindered by the uncertainties.

Maintain Neutral; Target price S$3.90.

Source: CIMB

[Musicwhiz]

Dear all, Part 1 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!

A snippet as follows:-

"By observing the upcoming 3Q 2012 results, it will be possible to project if SIAEC will have sufficient cash generation ability to at least maintain its final dividend at 14 cents/share. Looking back at 3Q 2011, operating cash flow was very high at $77.7 million, investing cash flows was $39 million, while financing cash flows shows an outflow of $57.5 million (payment of interim dividend for 1H 2011). The net cash inflow turned out to be $53.2 million, which is decent. For 4Q 2011, operating cash flows were very strong at $80.5 million, investing cash flows were $39.5 million and financing cash flows showed an inflow of about $4 million. This adds up to about $124 million in additional cash for 4Q, and for two quarters alone the combined inflow was about $183.2 million. A final dividend of 14 cents would drain about $154 million in cash, and therefore it can be seen that the two quarters’ strong cash inflow could sustain this final dividend, with the special dividend being declared to reduce cash reserves which were considered in excess of working capital requirements."