Latest news with #SIAEC
Business Times
16-05-2025
- Business
- Business Times
DBS Group Research upgrades SIA Engineering to a buy on ‘compelling growth,' raises target price
[SINGAPORE] DBS Group Research upgraded SIA Engineering's (SIAEC) stock to a 'buy' from a 'hold', citing limited exposure to tariff-related factors, growth ahead, among other factors. The group's price target was increased to S$2.80 from S$2.50. '(The upgrade reflects) SIA contract repricing upside, compelling growth narrative, and limited exposure to trade-related disruptions,' the research house said its note on Thursday (May 15). Given its parent company's strategy to maintain a young, technologically advanced fleet of airplanes, SIAEC is usually quick to gain expertise in maintaining new aircraft types and can win third-party business relating to these new age aircraft, DBS Group Research noted. It has the 'technology edge and strong captive business volumes owing to SIA parentage; (and is) well-positioned for long-term MRO (maintenance, repair and operations) demand growth, given its established partnerships with leading OEMs (original equipment manufacturers)', analyst Jason Sum wrote. The group's strategic partnerships with leading OEMs such as Safran and Rolls-Royce position it favourably for long-term growth in services, the note added. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For the full financial year 2024/25, SIAEC's net profit grew 43.8 per cent to S$139.6 million. It said the increase was supported by stable growth in the demand for aircraft MRO. The group's total revenue for the year increased by 13.8 per cent to S$1.2 billion, from S$1.1 billion. While group expenditure also grew, it rose at a slower pace of 12.7 per cent, with the increase largely due to higher manpower costs and increased material consumption. SIAEC is poised to capitalise on burgeoning air travel demand in the region, said Sum. In addition to its own operations in Singapore, Japan and the Philippines, SIAEC's broader network of associates and joint ventures is primarily concentrated in Asia, positioning the group's earnings for growth alongside the normalisation of traffic in the region. Furthermore, the group's facilities are better suited to servicing widebody aircraft used for longer distance international flights. Over the next few years, SIAEC has multiple levers in place to drive growth, including developing new engine capabilities and base maintenance operations in Subang this year, according to the note. Additionally, the group was recently selected to be Air India's strategic MRO partner and is poised to capitalise on the promising long-term growth outlook of the Indian aviation market. 'This reflects our upward earnings revision and greater conviction in the group's trajectory toward stronger core operating performance,' said Sum. 'We also favour its relative insulation from tariff-related risks, which reinforces the quality of its earnings outlook,' he added. SIAEC shares were trading at S$2.44 at 4 pm on Friday, up 1.3 per cent or S$0.03.
Business Times
13-05-2025
- Business
- Business Times
Carriers moving MRO work outside China even before tariff chaos: SIA Engineering
[SINGAPORE] There has been little to no impact from tariffs on SIA Engineering Company's (SIAEC) operations for now, but these are still early days, said chief executive officer Chin Yau Seng in a briefing on Tuesday (May 13). It has been just 42 days since the 'Liberation Day' tariffs were launched and the company is monitoring the tariffs and their impact. SIAEC will be looking into the structure of contracts with the view of passing on the costs to its customers. 'We are monitoring the situation, I think no one really knows how all these things will finally play out in what form,' he said. As the tariffs have yet to make a price impact, SIAEC has yet to see airlines moving their maintenance, repair and overhaul (MRO) work in China to other Asian markets. But carriers have been seeking to diversify their MRO bases overseas even before the tariffs, said Chin. 'We have been in conversation with some of them over the course of the past few years, we do have US carriers among our customers, so perhaps that's one opportunity, but we will continue conversations to see where they take us,' he said. For financial year 2025 ended Mar 31, the increase in SIAEC's expenditure was driven mainly by material and subcontract costs. Material costs have increased 32.8 per cent to S$272 million for FY2025 from S$204.8 million in FY2024. Subcontract costs have increased 36.6 per cent on the year to S$150.1 million from S$105.9 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While material costs are passed through to customers, subcontract costs might not be passed through to customers depending on the contract. While material costs have been affected by inflation and supply chain issues, the rise in subcontract costs stems from the increase in volume and a rate increase that occurred in FY2025. 'We've taken the hit this past financial year, but going forward, we've locked in the contract for the three years, if there was one big jump it was in the past year already,' said Chin. Looking ahead, SIAEC is implementing a new enterprise operating system (EOS), which will increase efficiency and consistency across its MRO operations. With demand from airlines maxing out the capacity at the company's hangars, this EOS is expected to aid in forecasting and planning to eke out spare capacity to sell, among other improvements. SIAEC will work closely with its customers as part of the EOS to plan for aircraft checks. From the predictability of check induction to the availability of spares, these are some factors the EOS will consider in ensuring that the company can be more efficient in delivery timelines for maintenance checks. 'The more predictable you are, the better you are in knowing there's spare capacity that's freed up that you can sell, that will translate to revenue,' said Chin. As airlines operate their aircraft for longer, SIAEC will be leveraging its knowledge gained from maintaining airframes such as the A350 and A380, as well the Boeing 787 and 777. The company has moved up the learning curve, with Chin pointing out that the A350 checks go out on a timely basis. 'You're actually getting deeper and deeper into the aircraft life cycle and therefore you expect to have a higher work content and more things to do on the ground, and that we will continue to be at the forefront to try keep developing capabilities and making sure we are among the best MROs handling these aircraft,' he said.
Business Times
13-05-2025
- Business
- Business Times
Little to no tariff impact for now: SIA Engineering
[SINGAPORE] There has been little to no impact from tariffs on SIA Engineering Company's (SIAEC) operations for now, but these are still early days, said chief executive officer Chin Yau Seng in a briefing on Tuesday (May 13). It has been just 42 days since the 'Liberation Day' tariffs were launched and the company is monitoring the tariffs and their impact. SIAEC will be looking into the structure of contracts with the view of passing on the costs to its customers. 'We are monitoring the situation, I think no one really knows how all these things will finally play out in what form,' he said. As the tariffs have yet to make a price impact, SIAEC has yet to see airlines moving their maintenance, repair and overhaul (MRO) work in China to other Asian markets. But carriers have been seeking to diversify their MRO bases overseas even before the tariffs, said Chin. 'We have been in conversation with some of them over the course of the past few years, we do have US carriers among our customers, so perhaps that's one opportunity, but we will continue conversations to see where they take us,' he said. For financial year 2025 ended Mar 31, the increase in SIAEC's expenditure was driven mainly by material and subcontract costs. Material costs have increased 32.8 per cent to S$272 million for FY2025 from S$204.8 million in FY2024. Subcontract costs have increased 36.6 per cent on the year to S$150.1 million from S$105.9 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While material costs are passed through to customers, subcontract costs might not be passed through to customers depending on the contract. While material costs have been affected by inflation and supply chain issues, the rise in subcontract costs stems from the increase in volume and a rate increase that occurred in FY2025. 'We've taken the hit this past financial year, but going forward, we've locked in the contract for the three years, if there was one big jump it was in the past year already,' said Chin. Looking ahead, SIAEC is implementing a new enterprise operating system (EOS), which will increase efficiency and consistency across its MRO operations. With demand from airlines maxing out the capacity at the company's hangars, this EOS is expected to aid in forecasting and planning to eke out spare capacity to sell, among other improvements. SIAEC will work closely with its customers as part of the EOS to plan for aircraft checks. From the predictability of check induction to the availability of spares, these are some factors the EOS will consider in ensuring that the company can be more efficient in delivery timelines for maintenance checks. 'The more predictable you are, the better you are in knowing there's spare capacity that's freed up that you can sell, that will translate to revenue,' said Chin. As airlines operate their aircraft for longer, SIAEC will be leveraging its knowledge gained from maintaining airframes such as the A350 and A380, as well the Boeing 787 and 777. The company has moved up the learning curve, with Chin pointing out that the A350 checks go out on a timely basis. 'You're actually getting deeper and deeper into the aircraft life cycle and therefore you expect to have a higher work content and more things to do on the ground, and that we will continue to be at the forefront to try keep developing capabilities and making sure we are among the best MROs handling these aircraft,' he said.
Business Times
13-05-2025
- Business
- Business Times
Stocks to watch: ThaiBev, Seatrium, SIA Engineering, StarHub, Sinarmas Land, Frasers Property, FHT, Cordlife
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Tuesday (May 13). Thai Beverage : The Chang beer maker announced on Friday that its profit for the second quarter ended Mar 31, 2025, decreased 3.2 per cent on the year to 6.7 billion baht (S$263.5 million), from a restated profit of seven billion baht. The group's Q2 and H1 FY2024 financials have been restated for comparative purposes due to the consolidation of beverage maker Fraser & Neave in September 2024, said ThaiBev in a bourse filing. The profit decline is due to lower earnings in spirits and others segments. Revenue for the three months ticked down 0.6 per cent to 85.4 billion baht, from a restated top line of 85.8 billion baht in Q2 FY2024. This decrease is due to a fall in sales for beer, food, non-alcoholic beverages and other businesses, but partially offset by an increase in sales from spirits. Shares of ThaiBev were up 1 per cent or S$0.005 at S$0.515, before the announcement. Seatrium : The group announced on Tuesday that it won a floating storage regasification unit (FSRU) conversion contract from floating energy infrastructure provider Hoegh Evi, Norway. The contract covers the conversion and longevity of liquified natural gas carrier, Hoegh Gandria, to an FSRU which includes the installation of a regasification skid, as well as the integration of key supporting systems such as cargo handling, utility, offloading, electrical and automation systems. Shares of Seatrium closed 1 per cent or S$0.02 higher at S$2.03 on Friday. SIA Engineering (SIAEC): The mainboard-listed group reported an 87.3 per cent jump in net profit to S$70.8 million for the six months ended March 2025 from S$37.8 million in the same period the previous year. The group's revenue for the second half rose 15.3 per cent to S$668.9 million from S$580.2 million in the year-ago period, its bourse filing on Friday showed. Meanwhile, its expenditure rose at a slower pace of 13.8 per cent. During the period, SIAEC posted an operating profit of S$11.1 million, reflecting an increase of S$8.9 million over the same period last year, and S$7.6 million higher than the first half of the financial year. Shares of SIAEC closed S$0.02 or 0.9 per cent higher at S$2.28, before the announcement. StarHub : The telecommunications company on Friday reported a profit of S$31.8 million for the first quarter ended Mar 31, 2025, sliding 18.4 per cent from S$38.9 million in the corresponding year-ago period. This was in tandem with lower earnings before interest, taxes, depreciation and amortisation, as well as higher depreciation and amortisation. It was offset by a higher share of profits from joint ventures and associates, and lower tax expense. Revenue for the three months fell 2.4 per cent year on year to S$540.5 million, from S$553.9 million. The group's regional enterprise business added 10.1 per cent to S$146.5 million, from S$133 million. This was due to a 20.2 per cent growth in managed services, and backed by a strong order book. Shares of StarHub closed flat at S$1.17, before the announcement. Sinarmas Land : Lyon Investments has raised the offer price for Sinarmas Land shares to S$0.375 a share from S$0.31 a share, in an announcement on Saturday. The closing date has been extended to 5.30 pm on May 29. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of Sinarmas Land shares for more than six years. The revised offer comes as the independent financial adviser for the transaction, W Capital Markets, said that the offer was 'not fair but reasonable'. The offeror held about 70.3 per cent of the total number of issued shares in Sinarmas Land at the launch of the initial offer. As at May 9, the offeror received valid acceptances of about 23.9 per cent of the total shares. This brings Lyon Investments' total number of shares to about 94.2 per cent. Shares of Sinarmas Land closed unchanged at S$0.32 on Friday. UMS Integration : The semiconductor player on Friday reported a profit of S$9.8 million for the first quarter ended Mar 31, 2025, almost unchanged from the group's profit in the corresponding year-ago period. This translates to earnings per share of S$0.0138, down from S$0.0141 a year earlier. The group declared an interim dividend of S$0.01 per share for the period under review, lower than the S$0.012 in Q1 FY2024. Revenue for the period climbed 7 per cent year on year to S$57.7 million, from S$54 million. Shares of UMS ended unchanged at S$1.05 on Friday. Trading halt Cordlife Group : The cord-blood bank announced on Tuesday that it has received a voluntary conditional cash partial offer for a 10 per cent stake in the group from Medeze Treasury, a wholly owned subsidiary of Medeze, a South-east Asian stem cell company listed in Thailand. The offeror is seeking to acquire around 25.6 million shares at an offer price of S$0.25 per share. This reflects a premium of about 61.3 per cent to the last traded price of S$0.155 on Friday, and also the 12-month volume-weighted average price. The company has requested for a trading halt on Tuesday morning. The counter closed 1.9 per cent or S$0.003 lower at S$0.155 on Friday. Frasers Property, Frasers Hospitality Trust: Both requested trading halts on Tuesday 'pending release of an announcement', sparking speculation about merger and acquisition moves involving the two. Previously, the managers of Frasers Hospitality Trust said on Apr 23 that it is undergoing a strategy review. This came after a failed privatisation bid made by the managers of the stapled group in 2022, and a trading activity surge in November and December 2024, when its stapled securities soared around 40 per cent as trading volume hit highs. Shares of Frasers Property closed flat at S$0.815 on Friday, and stapled securities of Frasers Hospitality Trust ended S$0.002 or 0.3 per cent higher at S$0.665.
Business Times
13-05-2025
- Business
- Business Times
Stocks to watch: ThaiBev, Seatrium, SIA Engineering, StarHub, Sinarmas Land, UMS, Cordlife
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Tuesday (May 13). Thai Beverage : The Chang beer maker announced on Friday that its profit for the second quarter ended Mar 31, 2025, decreased 3.2 per cent on the year to 6.7 billion baht (S$263.5 million), from a restated profit of seven billion baht. The group's Q2 and H1 FY2024 financials have been restated for comparative purposes due to the consolidation of beverage maker Fraser & Neave in September 2024, said ThaiBev in a bourse filing. The profit decline is due to lower earnings in spirits and others segments. Revenue for the three months ticked down 0.6 per cent to 85.4 billion baht, from a restated top line of 85.8 billion baht in Q2 FY2024. This decrease is due to a fall in sales for beer, food, non-alcoholic beverages and other businesses, but partially offset by an increase in sales from spirits. Shares of ThaiBev were up 1 per cent or S$0.005 at S$0.515, before the announcement. Seatrium : The group announced on Tuesday that it won a floating storage regasification unit (FSRU) conversion contract from floating energy infrastructure provider Hoegh Evi, Norway. The contract covers the conversion and longevity of liquified natural gas carrier, Hoegh Gandria, to an FSRU which includes the installation of a regasification skid, as well as the integration of key supporting systems such as cargo handling, utility, offloading, electrical and automation systems. Shares of Seatrium closed 1 per cent or S$0.02 higher at S$2.03 on Friday. SIA Engineering (SIAEC): The mainboard-listed group reported an 87.3 per cent jump in net profit to S$70.8 million for the six months ended March 2025 from S$37.8 million in the same period the previous year. The group's revenue for the second half rose 15.3 per cent to S$668.9 million from S$580.2 million in the year-ago period, its bourse filing on Friday showed. Meanwhile, its expenditure rose at a slower pace of 13.8 per cent. During the period, SIAEC posted an operating profit of S$11.1 million, reflecting an increase of S$8.9 million over the same period last year, and S$7.6 million higher than the first half of the financial year. Shares of SIAEC losed S$0.02 or 0.9 per cent higher at S$2.28, before the announcement. StarHub : The telecommunications company on Friday reported a profit of S$31.8 million for the first quarter ended Mar 31, 2025, sliding 18.4 per cent from S$38.9 million in the corresponding year-ago period. This was in tandem with lower earnings before interest, taxes, depreciation and amortisation, as well as higher depreciation and amortisation. It was offset by a higher share of profits from joint ventures and associates, and lower tax expense. Revenue for the three months fell 2.4 per cent year on year to S$540.5 million, from S$553.9 million. The group's regional enterprise business added 10.1 per cent to S$146.5 million, from S$133 million. This was due to a 20.2 per cent growth in managed services, and backed by a strong order book. Shares of StarHub closed flat at S$1.17, before the announcement. Sinarmas Land : Lyon Investments has raised the offer price for Sinarmas Land shares to S$0.375 a share from S$0.31 a share, in an announcement on Saturday. The closing date has been extended to 5.30 pm on May 29. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of Sinarmas Land shares for more than six years. The revised offer comes as the independent financial adviser for the transaction, W Capital Markets, said that the offer was 'not fair but reasonable'. The offeror held about 70.3 per cent of the total number of issued shares in Sinarmas Land at the launch of the initial offer. As at May 9, the offeror received valid acceptances of about 23.9 per cent of the total shares. This brings Lyon Investments' total number of shares to about 94.2 per cent. Shares of Sinarmas Land closed unchanged at S$0.32 on Friday. UMS Integration : The semiconductor player on Friday reported a profit of S$9.8 million for the first quarter ended Mar 31, 2025, almost unchanged from the group's profit in the corresponding year-ago period. This translates to earnings per share of S$0.0138, down from S$0.0141 a year earlier. The group declared an interim dividend of S$0.01 per share for the period under review, lower than the S$0.012 in Q1 FY2024. Revenue for the period climbed 7 per cent year on year to S$57.7 million, from S$54 million. Shares of UMS ended unchanged at S$1.05 on Friday. Cordlife Group : The cord-blood bank announced on Tuesday that it has received a voluntary conditional cash partial offer for a 10 per cent stake in the group from Medeze Treasury, a wholly owned subsidiary of Medeze, a South-east Asian stem cell company listed in Thailand. The offeror is seeking to acquire around 25.6 million shares at an offer price of S$0.25 per share. This reflects a premium of about 61.3 per cent to the last traded price of S$0.155 on Friday, and also the 12-month volume-weighted average price. Shares of Cordlife closed 1.9 per cent or S$0.003 lower at S$0.155 on Friday.
