Latest news with #SIAEngineering
Yahoo
6 days ago
- Business
- Yahoo
Does SIA Engineering (SGX:S59) Deserve A Spot On Your Watchlist?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like SIA Engineering (SGX:S59). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. It certainly is nice to see that SIA Engineering has managed to grow EPS by 27% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for SIA Engineering remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to S$1.2b. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. See our latest analysis for SIA Engineering You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for SIA Engineering's future profits. It's a good habit to check into a company's remuneration policies to ensure that the CEO and management team aren't putting their own interests before that of the shareholder with excessive salary packages. Our analysis has discovered that the median total compensation for the CEOs of companies like SIA Engineering with market caps between S$1.3b and S$4.1b is about S$1.8m. SIA Engineering's CEO took home a total compensation package worth S$1.4m in the year leading up to March 2024. That is actually below the median for CEO's of similarly sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally. For growth investors, SIA Engineering's raw rate of earnings growth is a beacon in the night. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. Based on these factors, this stock may well deserve a spot on your watchlist, or even a little further research. What about risks? Every company has them, and we've spotted 1 warning sign for SIA Engineering you should know about. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Singaporean companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Times
21-05-2025
- Business
- Business Times
STI closes flat amid a mixed regional showing, overnight Wall Street declines
[SINGAPORE] The Straits Times Index (STI) finished at 3,882.55 points, a mere 0.05 point lower on Wednesday (May 21), amid a mixed regional showing and after overnight declines on Wall Street as investors took profit. Little change notwithstanding in the blue-chip barometer, the Singapore broader market logged more gainers than decliners. Gainers beat decliners 273 to 205 across the broader market, with 982.2 million of securities valued at S$1.2 billion transacted. Singapore Airlines' maintenance, repair and overhaul arm, SIA Engineering , shares reached a 52-week high of S$2.55, up 4.5 per cent or S$0.11, a day after it announced signing S$1.3 billion agreements to provide services for the full service carrier and budget airline in the group. While Bukit Sembawang shares reached its highest in 52 weeks as well, at S$3.89 – S$0.12 or 3.2 per cent higher – there were no announcements from the property player that could have explained the share price performance. The banking trio had a mixed showing, DBS were S$0.25 or 0.6 per cent lower at S$44.13 while OCBC and UOB were unchanged at S$16.21 and S$35.40, respectively. Elsewhere in Asia, Malaysia and Japan's key indexes closed lower – FTSE Bursa KLCI dipped 0.3 per cent and Nikkei 225 was down 0.6 per cent, whereas other Asia's major indexes rose with South Korea's Kospi among the top performing with 0.9 per cent rise. Nasdaq Composite Index and S&P 500 both slid 0.4 per cent overnight, and the Dow Jones Industrial Average ended 0.3 per cent lower.
Straits Times
19-05-2025
- Business
- Straits Times
SIA, other aviation stocks take off; offers to delist firms from the SGX keep coming
Despite the strong performance, shares of SIA rose by just 2.4 per cent through the week, closing at $6.90 on May 16. ST PHOTO: BRIAN TEO Market Insights SIA, other aviation stocks take off; offers to delist firms from the SGX keep coming SINGAPORE – Aviation companies did well on the local stock exchange last week, with Singapore Airlines (SIA), SIA Engineering and Sats closing in positive territory on May 16. SIA on May 15 announced a 2.8 per cent jump in group revenue to a record $19.5 billion for the 2025 financial year (FY) ended March 31 , thanks to better travel demand and despite rising competition in the industry . Group net profit, which stood at $2.8 billion, was up 3.9 per cent from the year before, another record for the airline. This was boosted by a one-off, non-cash accounting gain of $1.1 billion, following the merger of its 49 per cent-owned Indian carrier Vistara with Air India in November. Despite the strong performance, shares of SIA rose by just 2.4 per cent through the week, closing at $6.90 on May 16. SIA had said that it will be rewarding its employees with a 7.45-month bonus, which is lower than the 7.94-month bonus it paid in FY2024, the highest in its history. The group had 27,821 employees in FY2025, which is up by 8.6 per cent from FY2024. At 40 cents per share in total, SIA's FY2025 dividends will also be less than the 48 cents per share it paid in FY2024. SIA Engineering did better on the exchange, with its shares rising more than 7 per cent through the week to close at $2.42. The company reported its results for FY2025 after the market closed on May 9, revealing that its net profit was up 43.8 per cent year on year to $139.6 million. This was on the back of a 13.8 per cent jump in revenue to $1.2 billion over the same period. SIA Engineering said the stronger performance was supported by growth in air travel, which drove demand for its aircraft maintenance, repair and overhaul services. Total FY2025 dividends amounted to nine cents per share, up from eight c ents per share in FY2024. Sats shares also rose last week, by 2.8 per cent, to close at $2.99 on May 16. The catering and ground handling company on May 15 said it will invest over $250 million to upgrade its ground operations and cargo handling infrastructure at Changi Airport over the next seven years. This is expected to help meet rising cargo demand at Changi Airport until Terminal 5 and the Changi East Industrial Zone open in the mid-2030s. Construction of Changi Airport's fifth and largest terminal commenced on May 14. When complete, it is expected to boost the airport's total annual capacity to around 140 million passengers, up from 90 million now. CEO of Genting Singapore to retire Genting Singapore shares fell last week. On May 14, its chief executive Tan Hee Teck announced a personal decision to retire from the company on May 31. Mr Tan, 69, will also relinquish his position as CEO of Resorts World Sentosa (RWS) as well as his other board roles. He has served the company in various capacities for around 20 years. Executive chairman Lim Kok Thay will assume the role of acting CEO, while RWS president Lee Shi Ruh will take over as CEO of the integrated resort. Both appointments will take effect on June 1. Mr Lim had stepped down as CEO of Malaysia's family-run conglomerate Genting Berhad in March after two decades at its helm, relinquishing the role to chief operating officer Tan Kong Han. Genting Singapore is 52.5 per cent-owned by its Malaysia parent. The announcements came after Genting Singapore released its results for the first quarter of 2025 on May 14. The company said revenue declined 20 per cent year on year to $626.2 million, while net profit fell by 41 per cent to $145 million over the same period. This was due to lower gaming revenues and the temporary closure of Hard Rock Hotel for renovation and rebranding works. There were also fewer visitors to RWS during the quarter. Analysts reckon Genting Singapore will perform better in the second half of 2025, when renovations across RWS are complete and new attractions such as the Singapore Oceanarium open. Shares of Genting Singapore were heavily traded last week. They fell by around 2 per cent through the week and closed on May 16 at 71.5 cents. Three more delisting offers Another three companies received privatisation offers last week. Frasers Property on May 14 made a second attempt to privatise Frasers Hospitality Trust for 71 cents per stapled security. That is one cent higher than what it offered to pay for the trust in September 2022 , although that deal eventually fell through when shareholders voted down the move . On May 15, the controlling shareholders of Ossia International – group executive chairman George Goh Ching Wah, CEO Goh Ching Huat and non-executive director Goh Ching Lai – offered to take the company private for 16 cents a share. It is the second time the three, who are brothers, are attempting to delist the company after their first offer in June 2024, at 14.5 cents per share, was unsuccessful. Mr George Goh had announced his intention to stand in Singapore's 2023 presidential election, but was later informed that he did not qualify. A third company, Cosmosteel Holdings, on May 15 received an offer from a group of investors to take it private at 20 cents per share. Twelve other companies have received privatisation offers in 2025 so far. They are SLB Development, PEC, Sin Heng Heavy Machinery, Paragon Reit, Japfa, Econ Healthcare, Murata Manufacturing, ICP, Amara Holdings, Procurri Corp, Ban Leong Technologies and Sinarmas Land. The offers of Paragon Reit, Japfa and Amara Holdings have been declared unconditional, and they will be delisted from the SGX. Earlier in May, the controlling shareholders of Sinarmas Land also made a second higher offer to take the property developer private. Efforts are being taken to raise the number of initial public offerings (IPOs) on the SGX and offset the tide of firms opting out of the local bourse. The Monetary Authority of Singapore and SGX RegCo on May 15 unveiled proposals to ease the IPO process, including measures to enable better price discovery on the SGX , or how a fair stock price is determined through market supply and demand . These plans are currently under public consultation. Other market movers Shares of Hotel Properties Limited (HPL) closed 2.3 per cent higher at $4.42. They had risen by as much as 9.3 per cent to $4.72 in morning trading on May 16, but pared gains after the jump in trading volumes prompted a query from SGX RegCo. About 545,000 shares had changed hands. In response to the query, HPL said it was unaware of any previously undisclosed information or other explanations for the unusual trading activity, and confirmed compliance with SGX listing rules. In its proposals for better price discovery on the stock exchange released on May 15, SGX RegCo said it is planning to avoid publicly querying firms, acting on market concerns that doing so without regard to materiality can unnecessarily alarm investors. Parkson Retail Asia more than doubled through the week, closing on May 16 at 14 cents. The department store operator said it will be paying a special interim dividend of four cents per share for the year, after announcing a 21 per cent year-on-year jump in first-quarter earnings to $14.7 million. At those levels, the dividend is also 50 per cent of Parkson's group net asset value. Cordlife jumped by almost 65 per cent to 26 cents last week, following an offer by Thailand-listed Medeze Group to acquire a 10 per cent stake at 25 cents per share. SingPost closed 8 per cent down at 57 cents, despite proposing on May 15 a special dividend of nine cents per share after booking a net exceptional gain of $222.2 million from the recent divestment of its business in Australia. SingPost reported a net profit of $245.1 million for the full year, up 212.9 per cent from the previous year. But excluding the net exceptional gain, underlying net profit fell 40.3 per cent to $24.8 million. At its results briefing, group chief financial officer Isaac Mah ruled out the possibility of nationalisation, even as SingPost continues to collaborate with the Government to find a profitable and sustainable operating model for the business. What to look out for this week Singtel and Sats will announce full-year results for the period ended March 31 on May 22 and May 23, respectively. Shares of Chinese electric vehicle battery maker Contemporary Amperex Technology will start trading in Hong Kong on May 20. With its shares priced at HK$263 each, the offering is expected to raise HK$35.66 billion (S$5.9 billion), making it the world's largest IPO in 2025. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
09-05-2025
- Business
- Business Times
SIA Engineering H2 net profit up 87.3% at S$70.8 million
SIA Engineering (SIAEC) 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 mainboard-listed 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, said its bourse filing on Friday (May 9). 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 a S$7.6 million gain from the first half of the financial year. The group's share of profits of associated and joint venture companies rose $9 million year on year, to $60 million. Of this, $56.9 million came from the engine and component segment, and $3.1 million from the airframe and line maintenance segment. SIAEC's earnings per share came in at S$0.0633 for the second half of the financial year. For the full financial year, its 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 maintenance, repair and overhaul (MRO). 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 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. With revenue growth outpacing expenditure increases, SIAEC's operating profit improved by S$12.3 million year on year, from S$2.3 million in the previous year to S$14.6 million. Meanwhile, profits from associated and joint venture companies followed a similar trend of increase in demand, and returned a 17.4 per cent year-on-year increase in share of profits to S$118.6 million. Profit from the engine and component segment rose 15.8 per cent to S$113.1 million, while the airframe and line maintenance segment saw a 66.7 per cent increase in profit to S$5.5 million. Meanwhile, SIAEC's exit from the Pratt & Whitney PW1500G engine Risk-Revenue Sharing Programme led to a one-time write-off of S$25.1 million in net assets. Its earnings per share for the full year came in at S$0.1246. Future plans SIAEC's board is recommending a final ordinary dividend of S$0.07 per share for the full year. The dividend amounts to about S$78 million and is subject to approval at the annual general meeting on Jul 22. If approved, the dividend will be paid on Aug 12. When combined with the interim dividend of S$0.02 per share paid earlier, the total dividend payout for the year will amount to S$0.09 per share, up from S$0.08 per share in the previous year. The company said that it observed robust demand for air travel, which drove growth in line maintenance services across its network. In Singapore, the group handled 8 per cent more flights than the previous year, with flight volumes in the fourth quarter approaching pre-Covid levels and continuing to rise steadily, it added. SIAEC also noted a steady stream of base maintenance checks during FY2024/25. However, these checks required longer hangar stays on average compared with the previous year. This was due to a higher proportion of legacy aircraft needing more extensive work, as well as delays caused by supply chain issues that affected the availability of aircraft spare parts. At the same time, the group's engine and component shops achieved a higher output in repairs and overhauls during the year. To meet growing demand, SIAEC expanded its engine test capacity by streamlining rosters to allow for extended work shifts. The company added that it is on track to enhance its testing capabilities for the CFM Leap-1B engine. The group anticipates continued strong demand in the MRO industry. While it noted that the direct impact of higher tariffs on the business has been minimal so far, it acknowledges the possibility of second-order, indirect effects. It added that although the potential impact of higher tariffs are difficult to assess at this stage, the group has implemented measures to mitigate any future risks associated with higher tariffs. 'We are closely monitoring geopolitical developments, changes in trade policies and industry trends, including air travel demand and aircraft fleet utilisation, to look out for emerging risks and opportunities,' it noted. Shares of SIAEC ended Friday S$0.02 or 0.9 per cent higher at S$2.28, before the announcement.
Yahoo
01-04-2025
- Business
- Yahoo
Are Poor Financial Prospects Dragging Down SIA Engineering Company Limited (SGX:S59 Stock?
SIA Engineering (SGX:S59) has had a rough month with its share price down 6.7%. We decided to study the company's financials to determine if the downtrend will continue as the long-term performance of a company usually dictates market outcomes. Specifically, we decided to study SIA Engineering's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for SIA Engineering is: 7.1% = S$118m ÷ S$1.7b (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each SGD1 of shareholders' capital it has, the company made SGD0.07 in profit. See our latest analysis for SIA Engineering So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, SIA Engineering's ROE doesn't look very promising. However, its ROE is similar to the industry average of 8.0%, so we won't completely dismiss the company. But then again, SIA Engineering's five year net income shrunk at a rate of 2.7%. Bear in mind, the company does have a slightly low ROE. Hence, this goes some way in explaining the shrinking earnings. However, when we compared SIA Engineering's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 8.9% in the same period. This is quite worrisome. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about SIA Engineering's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. SIA Engineering has a high three-year median payout ratio of 90% (that is, it is retaining 9.7% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Additionally, SIA Engineering has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 76%. However, SIA Engineering's ROE is predicted to rise to 8.7% despite there being no anticipated change in its payout ratio. In total, we would have a hard think before deciding on any investment action concerning SIA Engineering. Particularly, its ROE is a huge disappointment, not to mention its lack of proper reinvestment into the business. As a result its earnings growth has also been quite disappointing. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
