In his view, earnings from SIAEC’s repair and overhaul division – which remained loss-making over the latest quarter due to poor performance by its fleet management business – are now likely to achieve breakeven only in FY20 versus Daiwa’s earlier expectation of FY19.
SINGAPORE (Dec 18): Daiwa is keeping SIA Engineering (SIAEC) at “outperform” with a lower target price of $3.56 compared to $4.10 previously, in line with lower earnings forecasts over the next three years as well as tapering FY21-28 earnings growth rate for the group’s line maintenance division.
In a report last Friday, analyst Royston Tan notes that operating margins have likely bottomed for the group after it saw some positives in 2Q18 results on an adjusted basis.
