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Thursday, November 1, 2012

CIMB ups SIA Engineering target price

Source: http://www.theedgesingapore.com/the-daily-edge/business/40870-cimb-ups-sia-engineering-target-price-.html

WRITTEN BY REUTERS   
WEDNESDAY, 31 OCTOBER 2012 12:28

CIMB Research raised its target price for SIA Engineering Co to $4.70 from $4.56 and kept its ‘outperform’ rating, citing potential catalysts from stronger-than-expected maintenance, repair and overhaul demand.

By 11:23 a.m.T, SIA Engineering shares were unchanged at $4.16 and have gained 21.2% since the start of the year, compared to the Straits Times Index’s 14.6% gain.
SIA Engineering said its second-quarter net profit fell 5.8% from a year earlier to $67.1 million, dragged down by foreign exchange loss and higher expenses, but in line with expectations.

The expansion of Asian low-cost carriers should sustain SIA Engineering’s 6% earnings growth till 2015 and an average return on equity of 23%, CIMB said.

It added that SIA Engineering’s dividend yield of 5.3%, backed by a net cash of $429 million and nearly zero debt, makes it an attractive stock. 

OCBC Investment Research also raised its target price for the company to $4.14 from $4.04 and maintained its ‘hold’ rating.

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