“Recall that results were slightly below our expectations with the airframe and line maintenance segment seeing a 43% y-o-y fall in operating profit to $22.6 million in the quarter. A reduction in work volume and keen competition has weighed on results, and this may continue in the meantime, pressuring operating margins and hence possibly dividends in the future,” says Low.
SINGAPORE (Nov 26): OCBC Investment Research is maintaining its “hold” call on SIA Engineering (SIA EC) with a fair value estimate of $2.64 on the belief that the stock has few catalysts for now.
In a Monday report, analyst Low Pei Han highlights how SIA EC’s share price dipped to a two-week low of $2.48 as at the close of last Friday, representing a correction of about 15% since OCBC’s downgrade on Nov 9 post the group’s release of its 2Q19 results.
