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SIA Engineering Co
(SGX:S59)
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Rating:68Neutral
Price Target:
S$3.50
â–²(8.36% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily driven by solid underlying financial strength (profit recovery, revenue growth, and low leverage), tempered by 2026 margin compression and weaker cash conversion. Technical indicators are currently soft (negative MACD and price below key moving averages), while valuation is moderate with a supportive dividend yield.
Positive Factors
Sustained Revenue and Profit Recovery
The recovery from losses and continued multi-year revenue growth indicate restored operating scale and customer demand. This provides a stronger earnings base for the next several months, although the durability of gains depends on controlling costs.
Negative Factors
2026 Margin Compression
Lower gross and operating margins suggest that labor, parts, capacity, or pricing pressures are absorbing the benefit of revenue growth. If persistent, this could limit earnings expansion and weaken the profitability of future MRO activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Profit Recovery
The recovery from losses and continued multi-year revenue growth indicate restored operating scale and customer demand. This provides a stronger earnings base for the next several months, although the durability of gains depends on controlling costs.
Read all positive factors
SIA Engineering Co (S59) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$3.51B
Dividend Yield3.44%
Average Volume (3M)1.66M
Price to Earnings (P/E)21.2
Beta (1Y)0.62
Revenue Growth14.28%
EPS Growth21.19%
CountrySG
Employees6,253
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding1,124,116,300
10 Day Avg. Volume1,004,680
30 Day Avg. Volume1,655,990
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)2.07
Price to Sales (P/S)2.55
P/FCF Ratio69.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$3.89Price Target Upside20.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.16
Revenue Forecast (FY)S$1.55B
SIA Engineering Co Business Overview & Revenue Model
Company Description
SIA Engineering Company Limited, a Singapore-headquartered firm established in 1982, delivers a full spectrum of maintenance, repair, and overhaul (MRO) solutions globally. Its clientele includes airline operators and aerospace equipment manufactu...
How the Company Makes Money
SIA Engineering makes money primarily by providing aircraft maintenance, repair and overhaul (MRO) services under contractual arrangements to airline customers. Its key revenue streams generally come from: (1) Base maintenance (heavy checks): char...
SIA Engineering Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
88
Very Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.42B | 1.25B | 1.09B | 795.97M | 566.09M |
| Gross Profit | 189.30M | 305.90M | 305.90M | 235.95M | 183.70M |
| EBITDA | 98.75M | 214.90M | 166.81M | 131.45M | 36.03M |
| Net Income | 168.88M | 139.60M | 97.12M | 66.39M | 67.61M |
Balance Sheet | |||||
| Total Assets | 2.27B | 2.14B | 2.09B | 1.98B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 564.76M | 663.40M | 645.95M | 632.99M | 625.48M |
| Total Debt | 161.18M | 85.20M | 110.44M | 115.19M | 69.73M |
| Total Liabilities | 492.88M | 399.90M | 385.11M | 306.64M | 216.79M |
| Stockholders Equity | 1.76B | 1.72B | 1.69B | 1.67B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 52.24M | 102.60M | 61.18M | 4.98M | 5.91M |
| Operating Cash Flow | 89.11M | 167.00M | 100.40M | 64.61M | 29.20M |
| Investing Cash Flow | -48.09M | -14.80M | 30.81M | -19.46M | 15.75M |
| Financing Cash Flow | -138.58M | -134.70M | -117.80M | -37.10M | -35.74M |
SIA Engineering Co Technical Analysis
Positive
3.23
Price Trends
3.21
Negative
3.18
Positive
3.28
Negative
Market Momentum
-0.03
Negative
55.08
Neutral
49.13
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 3.23 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.21, and below the 200-day MA of 3.28, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 49.13 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | S$6.97B | 25.00 | 10.57% | 1.47% | 9.01% | 17.18% | |
68 Neutral | S$3.51B | 21.21 | 9.78% | 2.94% | 14.28% | 21.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | S$60.09M | 15.17 | 5.92% | 1.02% | -5.67% | 50.90% | |
53 Neutral | S$34.15B | 62.11 | 17.50% | 2.17% | 11.42% | -25.59% |
* Industrials Sector Average
SG:S59
SIA Engineering Co
3.20
0.16
5.40%
SG:BTJ
A-Sonic Aerospace
0.59
0.27
84.54%
SG:S63
ST Engineering
11.13
3.18
40.00%
SG:S58
SATS
4.75
1.54
48.16%
SIA Engineering Co Corporate Events
SIA Engineering boosts profit and capacity as it accelerates regional MRO expansion
Aug 13, 2026
SIA Engineering Company reported a strong performance for the year ended 31 March 2026, with group revenue rising about 14% on the back of robust MRO demand, higher flight activity and rate improvements. Operating profit roughly doubled to $29.4 m...
SIA Engineering reshapes board roles and committees after AGM
Jul 23, 2026
SIA Engineering Company has reshaped its board structure following the re-election of directors at its 44th AGM, with Chairman Tang Kin Fei re-designated from an independent to a non-independent non-executive director under Singapore Exchange rule...
SIA Engineering and Air India Eye Deeper MRO Partnership in India
Jul 3, 2026
SIA Engineering Company and Air India have signed a non-binding memorandum of understanding to explore deeper collaboration in maintenance, repair and overhaul services, in a bid to support India’s ambition of becoming a global aviation MRO ...
SIA Engineering, Safran to Launch CFM LEAP Engine MRO Joint Venture in Singapore
Jun 6, 2026
SIA Engineering Company and Safran Aircraft Engines have agreed to form a joint venture in Singapore to build a full-fledged CFM LEAP engine maintenance, repair and overhaul facility for LEAP-1A and LEAP-1B engines. The new shop will integrate SIA...
SIA Engineering, Safran Launch LEAP Engine MRO Joint Venture in Singapore
Jun 6, 2026
SIA Engineering Company and Safran Aircraft Engines have agreed to form a joint venture in Singapore to provide full maintenance, repair and overhaul services for CFM LEAP-1A and LEAP-1B engines. The new engine shop will integrate SIAEC’s ex...
SIA Engineering Deepens Malaysia Push With New Subang Base Maintenance Hub
May 22, 2026
SIA Engineering Company has officially opened Base Maintenance Malaysia, a wholly owned heavy maintenance facility at Sultan Abdul Aziz Shah Airport in Subang, adding two hangars capable of handling up to six concurrent checks on widebody and narr...
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.