Broker Name: DBS Group Research
Date of Report: 30 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: SIA Engineering Company Ltd (Bloomberg Ticker: SIE SP)
- Action: Upgrade to BUY
- Target Price: SGD 3.80 (12-month target, revised from SGD 4.00)
- Key Highlights:
- Resilient earnings and improved entry point after a recent 15% correction.
- Strong parentage from Singapore Airlines (SIA) drives 70-80% of top line, supporting growth and expertise in new aircraft types and third-party maintenance contracts.
- Strategic partnerships with leading OEMs (GE, Rolls-Royce, P&W) position SIAEC favourably for long-term MRO demand.
- Medium-term earnings growth expected, with a forecasted 13% core net profit CAGR over the next two years, supported by new facilities, capabilities, and joint ventures in Cambodia and Malaysia.
- Robust net cash position (~SGD 485mn) provides financial flexibility for shareholder returns and selective M&A.
- Sector-wide P/E compression reflected in revised P/E peg from 24x to 21x for FY27F core EPS.
- Risks include potential fuel shock, supply chain bottlenecks, and labour constraints which may impact MRO demand and margins.
- Implications:
- Current valuation is attractive after de-rating to c.-1SD, presenting a favourable risk/reward for investors.
- Actionable call: Buy SIA Engineering Company Ltd at current levels for a target price of SGD 3.80, as resilient earnings and aftermarket support drive upside potential.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com
