SIA Engineering kept at 'sell' with unchanged $3.50 target price by Maybank KimEng

Stock Name: SIA Engineering
Company Name: SIA ENGINEERING CO LTD

Research House: Maybank Kim Eng

Price Call: SELL

Target Price: 3.50

SINGAPORE (Feb 4): Maybank KimEng is maintaining its "sell" on SIA Engineering with an unchanged target price of $3.50.

In a report out today, analyst Derrick Heng management continues to guide for tough times and expects engine-shop visits to decline further.

In 3Q15, SIA Engineering's net income of $46.3 million, down 23.5% a year ago, with 9M forming 81% of Maybank KimEng's full-year estimates.

However, it was controlled labour and material costs that mitigated a 6.5% drop in its revenue.