Thursday, May 12, 2011

SIA Engineering Co rated 'outperform' by CIMB

Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD
Research House: CIMB

CIMB in a May 11 research report says: "4Q11 net profit of $60.9 million (-18% y-o-y) was broadly in line with our expectation, though slightly below consensus. FY2011 net profit of $258.5 million (+9.5% y-o-y) forms 98% of our number. Key positive was robust operating cash inflow of $80.5 million (37% of full-year cash generation).

"In line with its higher cash inflows, SIE declared a final and special dividend per share of 20 cents, bringing total dividend to 30 cents. This translates to a 127% payout. With no major variances, we keep our earnings estimates for FY2012-2013.

"Our target price stays at $5.05, based on blended 15x CY12 P/E and DCF valuations. Catalysts could include more flights handled at Changi Airport and guidance of higher payouts (vs. typical 85%), in our view. MAINTAIN OUTPERFORM."

No comments:

Post a Comment