SIA Engineering's net profit predicted to dip 4% to $173.5m this year

Their initial gains may be overshadowed by difficulties in the year.

Based on reports by DBS, SIAs stock has initially managed to rise almost 18% YTD in 2017, largely on the premise of special dividends, though the somewhat underwhelming 5-Singapore cents special dividend shows caution from management amidst structural challenges in the industry, and may be indicative of difficulties to come for the full year.

“4Q-FY17 PATMI came in at $45.9m – up 11% y-o-y but down 13% q-o-q – slightly above our expectations owing to a better showing from the associates line, as engine JV Eagle Services Asia secured higher workload on PW4000 engines. For the full year, we estimate FY17 core net profit to be $173.5m, down 4% y-o-y. Headline net profit was boosted by a gain on divestment of SIA’s 10% stake in HAESL of c.S$178m,” DBS said.

Here’s more from DBS:

Forecasts for SIA’s FY18/FY19 have been adjusted upward by around 5-6% to account for better-than-expected associate/JV profits and stronger top-line growth at the line maintenance segment. It is expected that there will be a full-year dividend of 13 Scts in FY17/18, in line with SIE’s payout policy of 85-90% of core earnings.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia