SIA Engineering - OCBC Investment 2016-02-02: 3QFY16 PATMI up 6.7% YoY

SIA Engineering - OCBC Investment 2016-02-02: 3QFY16 PATMI up 6.7% YoY SIA ENGINEERING CO LTD S59.SI 

SIA Engineering Company: 3QFY16 PATMI up 6.7% YoY 

  • SIA Engineering Company Ltd’s (“SIAEC”) 3QFY16 revenue came in largely in-line with our expectation, as revenue rose 3.7% YoY to S$275.2m on higher fleet management and line maintenance revenue. 
  • Operating expenses were slightly higher by 2.2% to S$246.2m, on increases in material and staff costs, mitigated by a decline in other expenses. 
  • The share of profits from associated and JV companies increased 31.2% to S$33.2m mainly due to onetime restructuring gains, including profit from the sale of facilities. As a result, PATMI came in 6.7% YoY higher at S$49.4m. 
  • However, we expect its outlook to be fairly muted, due to lower heavy maintenance checks as a result of improved airworthiness and longer maintenance cycles for both aircraft and engines, and we are keeping our forecasts unchanged for now. 
  • Maintain HOLD rating with the same fair value estimate of S$3.70.



Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-02-02
OCBC Securities SGX Stock Analyst Report HOLD Maintain HOLD 3.70 Same 3.70


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