SI Research: What SIA Engineering Company’s 1Q19 Results Reveal?
On 30 July 2018, the share price of SIA Engineering Company (SIAEC) closed at $2.93, which is a level not seen since 2009! Is the drop in share price simply an overreaction following its recent disappointing earnings results? Have the fundamentals changed for SIAEC or is the beaten-down share price an opportune entry point for investors? Latest Earnings In the latest 1Q19, SIAEC’s revenue declined 5.5 percent to $257.7 million. Management attributed its weak top line performance to lower airframe and component overhaul as well as fleet management revenue. The two biggest cost components of operating expenses, staffs costs and material costs fell 1.2 percent and 3.7 percent respectively, lagging the revenue decline. However, operating profit slumped 45.5 percent to $10.2 million, transla