- SIA Engineering (SGX:S59)’s 2HFY23 and FY23 performances largely met our expectations, with the group almost returning into the black at the operating level, with overall activity levels at 75-80% of pre-pandemic levels in the final quarter.
- - Read this at SGinvestors.io -
- Excluding the effect of wage supports and some one-off tax writebacks in FY22, SIA Engineering's net profit improved by S$102.6m y-o-y in FY23, according to management estimates. This represents a significant turnaround in profitability.
Line maintenance volumes continue to pick up as economies open, including China.
- - Read this at SGinvestors.io -
- We expect further normalisation of flight activity levels over 2023 and 2024 and for numbers to reach pre-pandemic levels over the next 6-12 months.
- Meanwhile, supply chain disruptions impact engine and component shops. Shares of JV/associate profits came in at S$77.8m for FY23, down 2% y-o-y. However, excluding one-off items last year, this was a S$42.7m improvement (more than double y-o-y). Contribution from associates and JVs, however, saw a decline in 4QFY23 owing to supply chain disruptions, which have led to component and part shortages and consequently, longer repair cycles.
Cost pressures remain amid persistent inflation
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Suvro SARKAR DBS Group Research | Jason SUM CFA DBS Research | https://www.dbs.com/insightsdirect/ 2023-05-11
Previous report by DBS:
2022-11-03 SIA Engineering - Skies Continue To Clear Up.
Price targets by 2 other brokers at SIA Engineering Target Prices.
Listing of research reports at SIA Engineering Analyst Reports.
Relevant links:
SIA Engineering Share Price History,
SIA Engineering Announcements,
SIA Engineering Dividends & Corporate Actions,
SIA Engineering News Articles
