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
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http://www.ocbcresearch.com/
2016-02-02
OCBC Securities
SGX Stock
Analyst Report
3.70
Same
3.70
