Singapore Stock Market News

SIA Engineering - Engines keep stalling; HOLD

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Publish date: Tue, 03 Nov 2015, 02:24 PM
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■ 2Q16 net profit missed on lower-than-expected engine shop performance. EBIT was much better, but from a low base.

■ We cut FY3/16E EPS 6% to reflect the weak results (FY3/17- 18E largely unchanged). Airline maintenance should increase in FY16 and fleet retirement should slow on lower oil prices.

Maintain HOLD. TP lifted 14% to SGD3.75 after rolling forward to FY3/17E EPS with target PER unchanged at 20x.
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