- SIA Engineering (SGX:S59)’s 1QFY25 net profit of S$33.2m (+23.0% y-o-y, -4.8% q-o-q) came in slightly behind our projection, at 21.4% of our full-year forecast. 1QFY25 revenue of S$268.7m (+2.6% y-o-y, -6.9% q-o-q) formed 21.7% of our full-year forecast.
Operating profit weaker than expected.
- - Read this at SGinvestors.io -
- Two factors that adversely affected SIA Engineering’s operating profit this quarter include:
- lumpy project revenue recognition – fewer maintenance, repair and overhaul (MRO) projects were completed during 1QFY25 due to heavier project contents; nevertheless, the delays in project completion and hence lesser revenue recognition in the past quarter should lead to higher revenue recognition in future quarters; and
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JVs and associates remained key contributors.
- JVs and associates turned in S$28m profit in 1QFY25 (+27.9% y-o-y, +3.1% q-o-q), slightly stronger than our projection and at 26.2% of our full-year forecasts. The decent performance was mainly driven by the strength in the engine and component JV/associate entities.
Continued recovery of flight activities at Changi Airport.
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