SINGAPORE (Nov 4): SIA Engineering is unlikely to see any strong growth in its aircraft repair and maintenance business, but OCBC predicts it will maintain a stable dividend payout rate.

The house retains its hold recommendation on SIA Engineering but raises its fair value estimate to $3.85 from $3.45, saying it expects the company to maintain its dividend payout ratio at nearly 90%.

However, the company's airframe and component overhaul services revenue will likely fall as newer aircraft require fewer maintenance checks, OCBC says.

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