Excerpts from CGSCIMB report
SIA Engineering (SGX: S59)
SIA Engineering (SIE)’s 1HFY3/23 net profit of S$32m (+30% yoy) was above expectations due to stronger JV contribution (+213% yoy) from more engine inductions. Core business and JV/associates recovering faster than expected, but expect high staff costs to persist. Management maintained its cautious guidance. Our TP is raised slightly to S$2.44, pegged to 1.6x CY23F P/BV. Net cash healthy at c.25% of current market cap.
Stronger revenue and JV contribution, but higher opex
SIA Engineering (SIE) reported 1HFY3/23 net profit of S$32m (-24% hoh, +30% yoy), forming 59% of our and 45% of Bloomberg consensus FY22F forecasts. This was below consensus expectations, but above ours due to stronger JV contribution. 1HFY23 revenue improved 37% yoy to S$362m on the back of rising flight volumes at Changi Airport. EBIT loss widened to S$10.8m (vs. 1H22: S$6.7m loss), with higher revenue offset...