- SIA Engineering (SGX:S59) reported a 41.9% y-o-y increase in group revenue to S$514m in 1HFY24 (Apr to Sep 2023), supported by recovery across all segments. Group expenditure, however, increased by a smaller 37.8% y-o-y to S$513.9m, with material and staff costs, and debt impairment provision being the major drags.
Turnaround to profit with recovery well underway despite slightly weaker 2QFY24
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- We note that 2QFY24 was weaker, running an operating loss of S$0.3m versus an operating profit of S$0.4m in 1QFY24, largely due to the aforementioned, one-off impairment.
- Share of profits from associates and JVs also benefited from the recovery of flight activities, growing 20.8% y-o-y to S$50m.
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- The company has declared an interim dividend of S$0.02 per share – the first interim dividend since the onset of the pandemic, constituting ~33% of our initial FY24 forecast. See SIA Engineering's dividend dates.
Demand for aircraft MRO services continued to recover in tandem with the resumption of flight activities
- Read more at SGinvestors.io.
