- SIA Engineering announced on 20 May that it has signed new Comprehensive Services Agreements with SIA and Scoot. The new agreements are effective from 1 Apr 2025 for two years, with an option to extend for another year (i.e. 2+1 structure).
A significant labour revenue step-up of 54.7% per annum.
- - Read this at SGinvestors.io -
- The previous agreements with SIA and Scoot, which commenced in Apr 2023 and were also on a 2+1 structure, were expected to yield a labour revenue of S$1.14b and S$120.8m over three years, respectively. The new agreements therefore translate to a significant step-up of 54.7% per annum.
Share price has rallied on the materially positive development.
- - Read this at SGinvestors.io -
- That being said, we reiterate our view that Trump’s tariffs risk delivering another round of shock to aviation supply chains, which are still reeling from the impact of the pandemic.
Raise fair value estimate to S$3.00.
- Read more at SGinvestors.io.
