Chart 1: SIA Engineering Weekly Chart (10 years)
SIA Engineering's revenue increased by 25-30% in H2 due to flight activity recovery, resuming dividend payments with a proposed final dividend of S$0.055, and analysts predict a dividend of S$0.07 for 2024.
Analysts recommend observing operating profit turnaround and a stronger MRO volume recovery and easing staff costs to consider investment. Despite lower revenue growth forecast for FY24, revenue reached 78% of pre-COVID levels, and the company faces internal challenges due to rising staff costs.
SIA Engineering needs to address staffing costs and capitalize on flight activity recovery for profitability.
Overall, analysts recommend cautious optimism for SIA Engineering's post-pandemic recovery - with key catalysts beingr ecovery in MRO volumes and easing staff cost pressures.
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