- SIA Engineering (SGX:S59)’s 2HFY23 (Oct 2022 to Mar 2023) revenue increased 43.4% y-o-y to S$433.8m as operating environment continued to improve in tandem with a pick up in travel activities. Operating performance remained in a loss position at S$15.5m in 2HFY23, largely due to higher staff and material costs. Excluding the impact of wage support, operating losses were progressively lower q-o-q (from -S$12.5m in 3QFY23 to -S$3.0m in 4QFY23).
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- SIA Engineering resumed its dividend payout with a proposed final dividend of S$0.055.
Flight volumed handled recovered to 79% of pre- COVID level –
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- The increase in flight activities could continue to drive demand for aircraft maintenance and overhaul, albeit a potentially lower number of heavy checks required by newer aircraft.
- Meanwhile, SIA Engineering will continue to boost competitiveness through the improvement in productivity, aircraft check turnaround time and seek new opportunities by working to secure new customers and contracts.
- After adjustments, we increase our fair value estimate for SIA Engineering from S$2.74 to S$2.78.
ESG Updates
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