SIA Engineering *Official* (SGX:S59)

[Shutterfly]

Is it good time to buy some?

 

[Shion]

SIA Engineering posts 23% fall in 1Q earnings to $41.3 mil

http://www.theedgemarkets.com/sg/article/sia-engineering-posts-23-fall-1q-earnings-413-mil

SINGAPORE (July 27): SIA Engineering Group posted 1Q15 earnings of $41.3 million, a decrease of 22.8% compared to the corresponding quarter last year.

Basic earnings per share was 3.68 cents, down 23.2% from 4.79 cents a year ago.

Profit in the same quarter last year included a $5.8 million gain from the restructuring of one of its subsidiaries. Excluding this gain, earnings to owners of the parent in this quarter would have decreased $6.4 million or 13.4%.

Revenue was lower by $16.8 million or 5.7%, primarily due to lower airframe component and overhaul revenue. Although the exchange loss increased by $4.1 million, expenditure fell $17.0 million or 6.2%, mainly from lower staff and subcontract costs.

As the decrease in expenditure offset the reduction in revenue, operating profit of $20.9 million increased by $0.2 million or 1.0% from the previous year.

Share of profits of associated and joint venture companies at $24.0 million decreased by $6.6 million or 21.6% from $30.6 million a year ago. Contributions from the engine repair and overhaul centres at $11.2 million were $7.9 million or 41.4% lower than the same period last year.

The cash balance of the group as at June 30, 2015 was $488.1 million, an increase of 5.3% compared to 31 March 2015.

SIA Engineering says overall market conditions for the MRO industry will remain challenging.

Rising business costs and competition from increasing MRO capacity in the region will also continue to exert pressure on margins.

“Efforts to manage costs and strengthen our competitiveness across core business units will remain a key priority. We continue to build on our capability to handle new generation aircraft. This will broaden the depth and breadth of our capabilities and scope of services. Supported by a strong balance sheet, the Group will continue to pursue strategic partnerships and long term growth opportunities in the region,” says the group.

SIA Engineering closed 3 cents lower at $8.05.

 

[Magica]

SIA Engineering posts 23% fall in 1Q earnings to $41.3 mil

http://www.theedgemarkets.com/sg/article/sia-engineering-posts-23-fall-1q-earnings-413-mil

SINGAPORE (July 27): SIA Engineering Group posted 1Q15 earnings of $41.3 million, a decrease of 22.8% compared to the corresponding quarter last year.

Basic earnings per share was 3.68 cents, down 23.2% from 4.79 cents a year ago.

Profit in the same quarter last year included a $5.8 million gain from the restructuring of one of its subsidiaries. Excluding this gain, earnings to owners of the parent in this quarter would have decreased $6.4 million or 13.4%.

Revenue was lower by $16.8 million or 5.7%, primarily due to lower airframe component and overhaul revenue. Although the exchange loss increased by $4.1 million, expenditure fell $17.0 million or 6.2%, mainly from lower staff and subcontract costs.

As the decrease in expenditure offset the reduction in revenue, operating profit of $20.9 million increased by $0.2 million or 1.0% from the previous year.

Share of profits of associated and joint venture companies at $24.0 million decreased by $6.6 million or 21.6% from $30.6 million a year ago. Contributions from the engine repair and overhaul centres at $11.2 million were $7.9 million or 41.4% lower than the same period last year.

The cash balance of the group as at June 30, 2015 was $488.1 million, an increase of 5.3% compared to 31 March 2015.

SIA Engineering says overall market conditions for the MRO industry will remain challenging.

Rising business costs and competition from increasing MRO capacity in the region will also continue to exert pressure on margins.

“Efforts to manage costs and strengthen our competitiveness across core business units will remain a key priority. We continue to build on our capability to handle new generation aircraft. This will broaden the depth and breadth of our capabilities and scope of services. Supported by a strong balance sheet, the Group will continue to pursue strategic partnerships and long term growth opportunities in the region,” says the group.

SIA Engineering closed 3 cents lower at $8.05.

$8.05? so high

 

[Shion]

$8.05? so high

They made a mistake in the figures

 

[simon_84]

report from phillips capital:

SIA Engineering Company Ltd - Improved technology a bane for MRO (Richard Leow)

Recommendation: Reduce

Closing price: S$3.88

Target price: $3.43

· Technological advancement in aircraft and engines have impacted results at the top line and associates & JVs lines.

· EBIT was flat despite the lower revenue, mainly from lower subcontract costs.

· Maintain at "Reduce" rating with unchanged target price of S$3.43.

Lower revenue did not come as a surprise; which was undermined by technological advancement in aircraft. S$277.3 million revenue makes up 24.9% of our full year FY16 estimate of S$1.11 billion.
Technological advancement in aircraft (more reliable and requiring less maintenance) had resulted in fewer tasks and longer intervals between checks.

Improved reliability of engines continued to weigh on the Associates & JVs line, and is a long-term headwind. Contributions from the engine repair and overhaul centres (Eagle Services & SAESL) at S$11.2 million were S$7.9 million or 41.4% lower y-o-y.

Associated companies show sign of stabilisation. Share of profits of associated companies was marginally higher by S$0.2 million, despite a lower contribution from Eagle Services.
This suggests that some of the associated companies fared better y-o-y.

 

[Shion]

SIA Engineering posts 5.7% rise in 2Q earnings to $44.5 mil

SIA Engineering posts 5.7% rise in 2Q earnings to $44.5 mil

http://www.theedgemarkets.com/sg/article/sia-engineering-posts-57-rise-2q-earnings-445-mil-0

SINGAPORE (Nov 2): SIA Engineering posted a profit attributable to owners of the parent of $44.5 million, or 3.96 cents per share, for the 2Q ended Sept. This was $2.4 million or 5.7% higher than the same quarter last year.

Revenue decreased 6.7% to $266 million, with lower airframe and component overhaul and fleet management revenue, partially mitigated by higher line maintenance revenue. Expenditure at $239 million was $30.3 million or 11.3% lower, primarily due to decreases in subcontract, staff and material costs. As a result, operating profit improved by $11.1 million or 69.8% to $27 million.

Share of profits from associated and joint venture companies was $18.7 million, $10.4 million or 35.7% lower than the corresponding quarter last year. Contributions from the engine repair and overhaul centres at $11.7 million were $8.3 million or 41.5% lower.

The cash balance of the group was $406.2 million, a decrease of 12.4% a year ago.

In its outlook, SIA Engineering says the operating environment remains challenging.

“Lower work content and longer check intervals of newer generation aircraft will continue to impact our business. Our efforts to strengthen efficiencies and manage costs have helped to improve the performance of the heavy maintenance and line maintenance businesses,” the group adds.

SIA Engineering has declared an interim dividend of 6.0 cents per share.

 

[duhzmehz]

its been reported from Edge markets that SIA Engineering is unlikely to see any strong growth in its aircraft repair and maintenance business, but OCBC predicts it will maintain a stable dividend payout rate.

The house retains its hold recommendation on SIA Engineering but raises its fair value estimate to $3.85 from $3.45, saying it expects the company to maintain its dividend payout ratio at nearly 90%.
However, the company's airframe and component overhaul services revenue will likely fall as newer aircraft require fewer maintenance checks, OCBC says.
Most airlines in Asia prefer new aircraft to take advantage of lower fuel and maintenance costs that offset the higher price they pay for the planes.
SIA Engineering shares are down 0.5% at $3.96, in contrast to a 1.1% gain by the benchmark Straits Times Index.

 

[Shion]

SIA Engineering's divestment in HK firm is negative: UOB

SIA Engineering's divestment in HK firm is negative: UOB

http://www.theedgemarkets.com/sg/article/sia-engineerings-divestment-hk-firm-negative-uob

SINGAPORE (Nov 27): The announced divestment of SIA Engineering’s 10% stake in Hong Kong Aero Engine Services will provide a one-off net gain of $149 million and $38 million dividend income, but is negative in the long term and helps justify a sell rating on the company, UOB Kay Hian says in a note.

The brokerage argues that the restructuring of joint ventures resulting from the divestment would “lead to increased competition with the removal of territory-based rights.”

It raises its 2016 fiscal year net profit forecast to $338 million from $165 million, but lowers its net profit forecast for 2017 by 3%.

UOB is maintaining its $3.30 target price.

SIA Engineering is down 1.6% at $3.60, compared to a 1.3% drop in the benchmark STI.

 

[Genosis]

SIA Engineering posts 6.7% increase in 3Q earnings to $49.4 million on rise in share of profits.

http://www.theedgemarkets.com/en/node/257206

 

[Shion]

SIA Engineering Company renews fleet management agreement with Tigerair Taiwan

SIA Engineering Company renews fleet management agreement with Tigerair Taiwan

http://www.theedgemarkets.com/sg/ar...ws-fleet-management-agreement-tigerair-taiwan

SINGAPORE (Feb 18): SIA Engineering Company (SIAEC) has renewed its Fleet Management Programme (FMP) agreement with Tigerair Taiwan.

The new agreement has a term of five years and covers a broad spectrum of inventory and technical management services for Tigerair Taiwan’s fleet of A320 aircraft.

SIAEC’s FMP business currently services 12 airlines operating passenger and cargo services spanning across Asia, Australia and the US.

Shares in SIAEC ended at $3.47.

 

[Shion]

SIA Engineering’s half-year earnings nearly triple to $234 mil, lifted by one-off gains

SIA Engineering’s half-year earnings nearly triple to $234 mil, lifted by one-off gains

http://www.theedgemarkets.com.sg/sg...rnings-nearly-triple-234-mil-lifted-one-gains

SINGAPORE (Nov 1): SIA Engineering Company (SIAEC) saw a near tripling of earnings to $233.9 million in 1H17 from $85.8 million a year ago (1H16), lifted by one-off gains.

SIAEC recorded a $141.6 million gain from the divestment of its 10% stake in Hong Kong Aero Engine Services to Rolls-Royce Overseas Holdings and Hong Kong Aircraft Engineering Company, and a special dividend of $36.4 million from HAESL for the divestment of its 20% stake in Singapore Aero Engine Services to Rolls-Royce Singapore.

Revenue for the half year fell 1.3% to $536.4 million on lower fleet management revenue, which was partially mitigated by higher line maintenance revenue.

The gains also contributed to an increase in provision for the profit-linked component of its staff renumeration which partially led to a 3.7% increase in expenditure to $513.5 million.

Share of profits of associated and joint venture companies fell by 11.2% to $37.9 million as contributions from its engine repair and overhaul centres fell 5.2% to $21.7 million.

Excluding the one-off gain and the subsequent provisions, SIAEC said operating profit would have fallen 7.7% to $44.2 million while earnings would have fallen 14.3% to $73.5 million.

For the quarter to Sept, earnings declined 20.2% to $35.5 million as revenue fell by 0.5% to $264.8 million.

During the quarter, SIAEC completed the merger of Singapore Aero Engine Services and International Engine Component Overhaul. Heavy Maintenance Singapore Services, the company’s joint venture with Airbus, was also incorporated on Oct 28 and is expected to start operations in FY17.

In a separate filing, SIAEC and its joint venture partner Pratt & Whitney agreed to integrate the operations of International Aerospace Tubes-Asia into that of Component Aerospace Singapore. SIAEC will sell 2.6% of its shares in CAS to P&W for US$2.7 million ($3.8 million) in cash and the group’s shareholding in CAS will fall from 49% to 46.4%.

SIAEC explained that the group will continue to restructure and streamline its operations, as the maintenance, repair and overhaul (MRO) industry outlook remains challenging in the light of the global economic uncertainties

The group declared a 4 cents dividend for the half year period.

Shares in SIAEC closed 1 cent higher at $3.70 on Tuesday.

 

[Shion]

Warning lights flash over SIA Engineering’s outlook

Warning lights flash over SIA Engineering’s outlook

http://www.theedgemarkets.com.sg/sg/article/warning-lights-flash-over-sia-engineering’s-outlook

SINGAPORE (Nov 2): Market watchers got a shock on Tuesday after SIA Engineering Company (SIAEC) announced a dividend payout of 4 cents for 1HFY17, down from the 6 cents a year ago.

In addition, SIAEC’s management stressed it would continue to restructure and streamline its operations amid a challenging outlook.

Maybank Kim Eng’s analysts Derrick Heng and Neel Sinha said in a note on Wednesday the move was “surprising given the stabilising earnings and strong cash balance”.

“Coupled with yet another cautious guidance, we read this DPS cut as a negative signal to its outlook,” said Heng and Sinha, who is maintaining their “hold” rating on the stock with a target price of $3.70.

To recap, SIAEC posted earnings of $233.9 million, propped up by one-off gains of $178 million from the restructuring of its Rolls Royce joint ventures and a $213 mil increase in staff cost.

Revenue declined 1.3% from lower fleet maintenance revenue, which was only partially mitigated by the higher line maintenance revenue from higher flight activities at Changi Airport.

Heng and Neel Sinha noted that core earnings, excluding the exceptional items, was about $77.2 million and achieved 43% of Maybank Kim Eng’s full year earnings forecast.

On the other hand, the 5.2% decrease in earnings for its engine repair and overhaul business signalled that work volumes were still low.

Putting things more bluntly were UOB Kay Hian’s analysts K Ajith and Sophie Leong in another report out the same day.

The duo believes SIAEC’s repair and overhaul segment was “likely to have been in the red in 2QFY17”.

Given the 3.3% increase in Changi Airport’s aircraft movements, Ajith and Leong had expected line maintenance revenue to have risen along with it.

“Assuming that SIAEC’s share of Changi Airport aircraft movements remained relatively stable at 78%, this would suggest losses for the repair and overhaul segment,” said the pair in a note on Wednesday.

To that end, UOB Kay Hian is maintaining its “sell” on the stock with a target price of $3.40.

Shares in SIAEC are trading 1 cent lower at $3.69.

 

[Layers]

Anyone kio durian?

Sent from Sony E6853 using GAGT

 

[Connoisseur-1976]

I'm adding a new position on SIA engineering as it draw near its 52-weeks low. SIAEC, together with its subsidiaries, operates as an aircraft maintenance, repair, and overhaul (MRO) company in the Asia-Pacific. It has joint ventures with Rolls Royce, Pratt & Whitney, etc and overhauling hydro-mechanical aircraft equipment for Boeing and Airbus aircraft.

With cash holdings of $539.8 million and net debt of $32.3million, they are in good position to invest in new MRO company who wants to set up in Singapore. Historically, whenever SIA bought engines from manufacturers, there's a requirement for those engines to service in own backyard, hence it creates potential revenue for SIAEC.

As the SEA region globalize, the need for travel increases and fleet size expand tremendously according to Boeing. This can only translate to better prospects in the future for MRO company, especially SIAEC who has a glowing influence as the best workshop in the region. Customer as far as emirates, virgin air also send their engines to Saesl(a subsidiary of SIAEC) in Singapore for overhaul.

When the economy recover and people are flying again, airlines will send more engines for re-work and overhaul. Buying shares is akin to buying the future. When we see there's future in the company that we invest in, any dips by Mr market is an opportunity to add more. As long as we believed in the fundamental and potential of it, there's no reason to lose faith or sleep when the price is depress during downturn.

Warren buffett, the best investor of our time said that," I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."

When we see value in a company, and believes in it, time will do it's work.

 

[strangerjun]

I'm adding a new position on SIA engineering as it draw near its 52-weeks low. SIAEC, together with its subsidiaries, operates as an aircraft maintenance, repair, and overhaul (MRO) company in the Asia-Pacific. It has joint ventures with Rolls Royce, Pratt & Whitney, etc and overhauling hydro-mechanical aircraft equipment for Boeing and Airbus aircraft.

With cash holdings of $539.8 million and net debt of $32.3million, they are in good position to invest in new MRO company who wants to set up in Singapore. Historically, whenever SIA bought engines from manufacturers, there's a requirement for those engines to service in own backyard, hence it creates potential revenue for SIAEC.

As the SEA region globalize, the need for travel increases and fleet size expand tremendously according to Boeing. This can only translate to better prospects in the future for MRO company, especially SIAEC who has a glowing influence as the best workshop in the region. Customer as far as emirates, virgin air also send their engines to Saesl(a subsidiary of SIAEC) in Singapore for overhaul.

When the economy recover and people are flying again, airlines will send more engines for re-work and overhaul. Buying shares is akin to buying the future. When we see there's future in the company that we invest in, any dips by Mr market is an opportunity to add more. As long as we believed in the fundamental and potential of it, there's no reason to lose faith or sleep when the price is depress during downturn.

Warren buffett, the best investor of our time said that," I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."

When we see value in a company, and believes in it, time will do it's work. ����

if passenger and freight demand continue to increase, this stock sure up one. Maintenance and repair confirmed must perform at scheduled and non-scheduled interval. Unless airline companies want to flout the regulation.

Of course, it is vulnerable to financial crisis and recession as what we have seen in 2008. I feel it is a cyclical stock...

 

[Android user]

if passenger and freight demand continue to increase, this stock sure up one. Maintenance and repair confirmed must perform at scheduled and non-scheduled interval. Unless airline companies want to flout the regulation.

Of course, it is vulnerable to financial crisis and recession as what we have seen in 2008. I feel it is a cyclical stock...

I saw someone shared how SIA divested Sats and give out Sats shares to SIA shareholders. Will not be surprise SIA eng "suffer" same fate.

 

[Connoisseur-1976]

Current PE is only 11 and EPS at $0.29. With free operating cash flow coming in, and economy to slowly recover, there is a chance dividend for next year will be higher.

 

[Layers]

Current PE is only 11 and EPS at $0.29. With free operating cash flow coming in, and economy to slowly recover, there is a chance dividend for next year will be higher. ��

Conno support bull of sia eng sia. Whatz your avg price ah?

Sent from Sony E6853 using GAGT

 

[Connoisseur-1976]

Conno support bull of sia eng sia. Whatz your avg price ah?

Sent from Sony E6853 using GAGT

Fresh position last Friday at $3.36

 

[Connoisseur-1976]

I'm adding a new position on SIA engineering as it draw near its 52-weeks low. SIAEC, together with its subsidiaries, operates as an aircraft maintenance, repair, and overhaul (MRO) company in the Asia-Pacific. It has joint ventures with Rolls Royce, Pratt & Whitney, etc and overhauling hydro-mechanical aircraft equipment for Boeing and Airbus aircraft.

With cash holdings of $539.8 million and net debt of $32.3million, they are in good position to invest in new MRO company who wants to set up in Singapore. Historically, whenever SIA bought engines from manufacturers, there's a requirement for those engines to service in own backyard, hence it creates potential revenue for SIAEC.

As the SEA region globalize, the need for travel increases and fleet size expand tremendously according to Boeing. This can only translate to better prospects in the future for MRO company, especially SIAEC who has a glowing influence as the best workshop in the region. Customer as far as emirates, virgin air also send their engines to Saesl(a subsidiary of SIAEC) in Singapore for overhaul.

When the economy recover and people are flying again, airlines will send more engines for re-work and overhaul. Buying shares is akin to buying the future. When we see there's future in the company that we invest in, any dips by Mr market is an opportunity to add more. As long as we believed in the fundamental and potential of it, there's no reason to lose faith or sleep when the price is depress during downturn.

Warren buffett, the best investor of our time said that," I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years."

When we see value in a company, and believes in it, time will do it's work.

Will rebalance when the price reach $3.6