Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD
Research House: OCBC
OCBC says the results were “nearly spot on our forecasts” with revenue 1.3% above its view, net profit 0.7% ahead, while both 9-month numbers meet around 75% of its FY forecasts.
Company Name: SIA ENGINEERING CO LTD
Research House: OCBC
SIA Engineering (S59.SG) off 1.0% at $4.18 after it posts 3Q revenue at $269.5 million, +11.6% on year and down 2.7% on quarter with net profit of $60.3 million, +7.7% on year and down 9.3% on quarter.
Despite the sequential declines, selling is light with only 116,000 shares traded, as the results were largely within expectations.
Despite the sequential declines, selling is light with only 116,000 shares traded, as the results were largely within expectations.
OCBC says the results were “nearly spot on our forecasts” with revenue 1.3% above its view, net profit 0.7% ahead, while both 9-month numbers meet around 75% of its FY forecasts.
“Going forward, management believes that the group will continue to benefit from the recovery in the aviation industry, which industry watchers believe has just embarked on its typical multi-year profit cycle,” the house says.
“But some note that higher fuel prices and a potential recession in Europe could disrupt the smooth upward progression in profits.” It leaves FY11-FY12 forecasts largely unchanged, but tweaks fair value $4.30 vs $4.21, applying 16X FY12F EPS; “In view of the limited upside potential from here, we maintain our HOLD rating.”
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