Analyst Roy Chen of UOB Kay Hian maintained a Buy rating on SIA Engineering Co (SEGSF – Research Report), with a price target of S$2.70.
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Roy Chen has given his Buy rating due to a combination of factors that reflect SIA Engineering Co’s strong financial performance and promising future prospects. The company has demonstrated a moderate but steady improvement in earnings, with its third-quarter net profit reaching the highest level since the pandemic began. This improvement is supported by a near-full recovery in the line maintenance business volume at Changi Airport, indicating resilience and a return to pre-pandemic operational levels.
Furthermore, SIA Engineering Co offers attractive yield projections for the upcoming fiscal years, enhancing its investment appeal. Despite ongoing supply chain challenges affecting the global aviation sector, the company has managed to maintain a solid performance, particularly through its joint ventures and associates. These ventures have made significant contributions to profits, driven by growth in the engine, component, and airframe maintenance segments. Overall, these factors underscore the company’s robust position and justify the Buy rating.