Broker: DBS Group Research
Date of Report: 24 July 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: SIA Engineering Company Ltd (Ticker: SIE SP)
- Action: BUY
- Target Price: SGD 3.80 (12-month)
- Current Price (as of 28 Apr 2026): SGD 3.13
Key Highlights & Actionable Insights:
- 1QFY27 results were slightly below expectations, with net profit of SGD 40.3mn, due to higher gestation costs at associates and JVs. Core operations showed strong margin recovery, with operating profit up 158.8% y/y and operating margin at 4.0%, the best since the pandemic.
- Short-term drag from investment costs for engine and component capacity expansion (primarily at SAESL), but these are seen as transitory.
- Positive medium-term outlook: The margin recovery and strategic moves—such as the new LEAP JV with Safran and an MoU with Air India—position the company for growth as gestation costs roll off and capacity buildout matures.
- Dividend yield: 3.5% (forward), Forward P/E: 18.4x, P/Book: 2.0x, ROE: 9.7%
- DBS maintains a BUY rating on SIAEC with an unchanged Target Price of SGD 3.80, citing earnings inflection supported by margin improvements and resilient APAC demand.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can access the full research report from the broker’s website.
