- SIA Engineering (SGX:S59)’s 3QFY24 net profit of S$27m (-17% q-o-q, +110% y-o-y) was slightly below our S$31m estimate, with 9MFY24 net profit forming 70%/71% of our/Bloomberg consensus’ full-year forecasts.
3QFY24 revenue ~9% above pre-COVID, but forex costs dragged
- - Read this at SGinvestors.io -
- 3QFY24 EBIT came in at a S$3.4m loss (3QFY23: S$12.5m loss), due largely to S$3.9m forex losses, excluding which, EBIT would be positive at S$0.5m. 3QFY24 associate profits was in line at S$24m (-15% q-o-q, +23% y-o-y).
Both airframe and engine likely saw healthy operating trends
- We believe SIA Engineering's strong 3QFY24 revenue growth was driven by healthy recovery in both the airframe and engine segments (undisclosed by SIA Engineering).
- - Read this at SGinvestors.io -
- As of end-Dec 23, passenger volumes at Changi Airport hit 90% of end-Dec 19 levels, with the Singapore Ministry of Transport expecting volumes to reach pre-COVID levels in 2024F.
Expect rising associate profits, while staff costs should stay high
- Read more at SGinvestors.io.
