Research report on SIA Engineering Company

On 3rd February 2017, SIA Engineering Company announced 3Q results for 2016/17. It wasn’t exactly an impressive set of results but the data certainly reveals some interesting aspects of the company’s performance against the backdrop of a challenging operating environment for the maintenance, repair and overhaul (MRO) sector. This will be another research report on SIA Engineering Company (SIAEC).

Traditionally, SIAEC has a solid business model because it provides maintenance, repair and overhaul (MRO) of aircraft, engines and related components and offers the complete MRO suite of services. The business is recurring and with its vast network of joint ventures, the MRO stalwart managed to build an impressive investment moat in Singapore, rivalled only by local competitor, Singapore Technologies Aerospace.

SIA Engineering Company

However, the emergence of new generation aircraft with high reliability looks set to disrupt SIAEC’s business model because of the decline in demand due to extended maintenance intervals and lesser work-scope. In light of this, the management has started to position itself for the future through several initiatives.

Given that its joint ventures contribute a substantial amount of profits consistently to SIAEC, the management rationalized its portfolio of joint ventures periodically to extract value for shareholders. Some of these initiatives include restructuring and merger of associated entities and development of capabilities to support new generation aircraft.

During the first quarter, the Group [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Lost your Password?

You may sign up to become a member of SG Wealth Builder. The full benefits and privileges of SG Wealth Builder Membership:

  1. Access to the latest premium articles of SG Wealth Builder
  2. Email notifications of latest blog articles
  3. Request for coverage on stocks, insurance and other personal financial topics
  4. Comment in articles
  5. Participate in campaigns
  6. Future network opportunities

Monthly Subscription Plan

You may sign up for the monthly subscription for only $19.99 per month! You can choose to cancel the subscription after one month with no penalty.

This plan is ideal for readers who wish to try out SG Wealth Builder Membership for a limited time. Thereafter, you may choose to upgrade to Lifetime Membership for a one-off payment. Email me (sgwealthbuilder@gmail.com) to find out more about the Lifetime Membership.

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Updated: October 19, 2019 — 2:19 pm

1 Comment

Add a Comment
  1. Interesting observation with the looming Unusual ipo spinoff.

    Basically SIA is most affected from M2A Asia …Need to Market correction now related Stock Picks & Stock Tips

Leave a Reply