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SIA Engineering kept in ‘holding’ pattern

PC Lee
PC Lee2/7/2017 12:45 PM GMT+08  • 2 min read
SIA Engineering kept in ‘holding’ pattern
SINGAPORE (Feb 7): Maybank Kim Eng and CIMB are keeping SIA Engineering at “hold” as the research houses await a visible recovery in MRO (maintenance, repair and overhaul) volume and near-term growth outlook for the sector remains challenging.
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SINGAPORE (Feb 7): Maybank Kim Eng and CIMB are keeping SIA Engineering at “hold” as the research houses await a visible recovery in MRO (maintenance, repair and overhaul) volume and near-term growth outlook for the sector remains challenging.

3Q17 headline net profit of $52.6 million included a $2.3 million gain on partial disposal of an associate while year to date of $159 million included $178 million from restructuring of its Rolls-Royce JV and an increase in related staff cost of $23.1 million. Excluding various one-offs, 3Q17 core profit declined 10.5% y-o-y but grew a significant 40% sequentially from 2Q17 which was affected by various divestments.

CIMB says SIA Engineering’s 3Q17 revenue of $272 million was in line with its expectations. Key to underperformance was lower fleet management although this was mitigated by higher line maintenance revenue.

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