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SIA Engineering Co (SG:S59)
SGX:S59
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SIA Engineering Co (S59) AI Stock Analysis

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SG:S59

SIA Engineering Co

(SGX:S59)

Rating:63Neutral
Price Target:
S$3.00
▼(-8.26%Downside)
SIA Engineering Co's overall stock score is driven by strong financial performance, with robust revenue growth and a solid balance sheet. However, technical indicators suggest the stock is currently overbought, posing a risk of near-term price correction. The valuation is on the higher side, indicating limited immediate upside unless there is significant earnings growth. The absence of notable earnings call data or corporate events did not impact the score.
Positive Factors
Contract and Revenue Impact
The new contract with SIA and Scoot implies a significant uplift in annualised labor revenue for SIAEC.
Revenue Growth
Revenue rose 33.4% y/y to SGD358.4mn, exceeding expectations, largely driven by the repricing of the SIA Group contract.
Strategic Partnerships
The strategic partnerships with leading OEMs like GE, Safran, Rolls-Royce, and P&W position SIAEC favorably for long-term growth.
Negative Factors
Consumer Sentiment and Supply Chain
Weaker consumer sentiment leading to capacity cuts and deferral of MRO in Asia, and supply chain bottlenecks are key risks that could dampen SIA Engineering Co's volumes or increase costs.
Market Valuation
There was a downgrade to HOLD following the recent share price surge, suggesting the stock is fairly valued.
Operating Performance
Operating profit missed expectations, showing no obvious margin improvement despite the contract renewal with Singapore Airlines.

SIA Engineering Co (S59) vs. iShares MSCI Singapore ETF (EWS)

SIA Engineering Co Business Overview & Revenue Model

Company DescriptionSIA Engineering Company Limited, together with its subsidiaries, provides maintenance, repair, and overhaul (MRO) services to airline carriers and aerospace equipment manufacturers worldwide. The company operates through two segments, Airframe and Line Maintenance; and Engine and Component. The Airframe and Line Maintenance segment provides airframe maintenance, line maintenance, and fleet management programs. Its services include scheduled routine maintenance and overhaul, specialized and non-routine maintenance, and modification and refurbishment programs; aircraft certification and technical and non-technical ground handling services, such as push-back and towing, as well as the provision of aircraft ground support equipment and rectification work; and fleet technical management and inventory technical management services, which include the provision of engineering and MRO solutions. The Engine and Component segment provides component overhaul, and engine repair and overhaul services. SIA Engineering Company Limited also manufactures aircraft cabin parts and tooling for the aerospace industry; and provides repair and overhaul services for hydro-mechanical equipment for aircraft. In addition, it offers engine maintenance, parts repair, storage and preservation, material management, on-wing, and engine testing services. The company was incorporated in 1982 and is based in Singapore. SIA Engineering Company Limited is a subsidiary of Singapore Airlines Limited.
How the Company Makes MoneySIA Engineering Co. generates revenue through its diversified MRO services, which are categorized into line maintenance, base maintenance, and component and engine services. Line maintenance involves routine inspections and minor repairs performed on aircraft at airports, which provides a steady stream of income due to the frequent and necessary nature of these services. Base maintenance involves more extensive work such as scheduled heavy maintenance checks and modifications, typically carried out at the company's facilities, which commands higher service fees. Additionally, the company earns revenue from component and engine services, including repair and overhaul of individual aircraft components and engines, which are critical to maintaining operational efficiency and safety. Key partnerships with major airlines and aircraft manufacturers enhance its service offerings and client base, contributing significantly to its earnings. The company also benefits from its geographical advantage in Singapore, a major aviation hub, which attracts international clients seeking high-quality MRO services.

SIA Engineering Co Financial Statement Overview

Summary
SIA Engineering Co exhibits a solid financial position with strong revenue growth and improved profitability margins. The balance sheet reflects low leverage and a strong equity base, enhancing financial stability. Meanwhile, cash flow growth and efficient cash generation underscore the company's operational effectiveness. Opportunities include further improving EBIT margins and leveraging its strong cash position for strategic growth.
Income Statement
65
Positive
SIA Engineering Co has shown a healthy revenue growth of approximately 13.8% from 2024 to 2025, along with a strong net profit margin of 11.21% for the latest year. However, gross profit margins have remained stable, indicating room for improvement in cost management. The company has improved its EBIT margin to 1.17%, moving from a loss-making EBIT position in previous years. EBITDA margin improved significantly, suggesting better operational efficiency.
Balance Sheet
78
Positive
The company maintains a strong balance sheet with a debt-to-equity ratio of 0.05, indicating low leverage, which mitigates financial risk. Return on equity stands at 8.11%, showcasing moderate profitability on shareholders' equity. The equity ratio is high at 80.32%, reflecting a solid equity base, which enhances financial stability and reduces bankruptcy risk.
Cash Flow
72
Positive
Operating cash flow increased to 167 million, showing robust cash generation capabilities. Free cash flow also grew significantly by 98.3% from the previous year, indicating potential for reinvestment or debt reduction. The operating cash flow to net income ratio is 1.20, signifying good quality earnings with strong cash backing.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.25B1.09B795.97M566.09M442.99M
Gross Profit305.90M305.90M235.95M183.70M144.27M
EBITDA214.90M63.66M131.45M36.03M-1.35M
Net Income139.60M97.12M66.39M67.61M-11.25M
Balance Sheet
Total Assets2.14B2.09B1.98B1.84B1.81B
Cash, Cash Equivalents and Short-Term Investments663.40M645.95M632.99M625.48M615.96M
Total Debt85.20M110.44M115.19M69.73M84.08M
Total Liabilities399.90M385.11M306.64M216.79M265.48M
Stockholders Equity1.72B1.69B1.67B1.61B1.53B
Cash Flow
Free Cash Flow102.60M51.72M4.98M5.91M145.40M
Operating Cash Flow167.00M100.40M64.61M29.20M165.79M
Investing Cash Flow-14.80M30.81M-19.46M15.75M22.82M
Financing Cash Flow-134.70M-117.80M-37.10M-35.74M-89.76M

SIA Engineering Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.27
Price Trends
50DMA
2.99
Positive
100DMA
2.61
Positive
200DMA
2.49
Positive
Market Momentum
MACD
0.09
Positive
RSI
61.28
Neutral
STOCH
66.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:S59, the sentiment is Positive. The current price of 3.27 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 2.99, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:S59.

SIA Engineering Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
S$27.61B36.7127.51%1.35%11.63%19.71%
74
Outperform
$9.84B7.9928.14%2.25%7.88%58.71%
73
Outperform
$13.95B13.7020.60%1.74%-8.88%8.31%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
63
Neutral
S$3.70B26.248.24%2.42%13.79%44.05%
63
Neutral
$5.02B20.669.89%0.88%12.54%332.80%
51
Neutral
$8.32B52.932.48%0.62%26.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:S59
SIA Engineering Co
3.30
1.03
45.31%
SG:5E2
Seatrium Limited
2.43
0.94
63.31%
SG:S58
SATS
3.41
0.28
9.05%
SG:S63
ST Engineering
8.86
4.59
107.49%
SG:U96
Sembcorp Industries
7.84
3.38
75.71%
SG:BS6
Yangzijiang Shipbuilding (Holdings)
2.53
0.07
2.80%

SIA Engineering Co Corporate Events

SIA Engineering Announces Board Committee Changes
Jun 25, 2025

SIA Engineering Company Limited has announced the appointment of Mr. Ng Chee Khern as a member of its Board Safety & Risk Committee, effective from June 25, 2025. This change is part of a broader restructuring of the company’s board committees, which aims to enhance governance and oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

The most recent analyst rating on (SG:S59) stock is a Buy with a S$2.80 price target. To see the full list of analyst forecasts on SIA Engineering Co stock, see the SG:S59 Stock Forecast page.

SIA Engineering Secures $1.3 Billion Services Agreements with Singapore Airlines and Scoot
May 20, 2025

SIA Engineering Company has signed new Comprehensive Services Agreements with Singapore Airlines and its low-cost subsidiary, Scoot, which replace previous agreements from April 2023. Effective from April 1, 2025, these agreements are set for a two-year term with an option to extend for one more year, and they are expected to generate $1.3 billion in labor revenue. This development is significant for SIAEC’s business as it strengthens its position in the MRO industry and reinforces its strategic partnership with major airlines, potentially impacting stakeholders positively.

The most recent analyst rating on (SG:S59) stock is a Buy with a S$2.80 price target. To see the full list of analyst forecasts on SIA Engineering Co stock, see the SG:S59 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025