Broker: DBS Group Research
Date of Report: 30 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: SIA Engineering Company Ltd (Ticker: SIE SP)
- Action: Upgrade to BUY
- Target Price: SGD3.80 (12-month target, lowered from SGD4.00)
- Key Insights:
- Resilient earnings outlook and an attractive entry after a 15% share price correction.
- SIA Engineering is well positioned for long-term MRO (Maintenance, Repair & Overhaul) demand growth, aided by captive business from Singapore Airlines (SIA) and strategic partnerships with leading OEMs.
- Expecting 13% core net profit CAGR over the next two years, driven by new engine/component capabilities, ramp-up at Subang, and regional JV expansions.
- Strong financial flexibility with a robust net cash position (~SGD485mn) supports potential for higher shareholder returns, selective M&A, and partnerships.
- Valuations now at about -1SD, with resilient aftermarket-driven earnings supporting a more favourable risk/reward profile.
- Risks: Prolonged fuel shock, supply chain bottlenecks, and labour constraints may impact growth and margins.
Implications: Investors are advised to consider SIA Engineering Company Ltd for medium-term growth potential, supported by resilient earnings, sector partnerships, and a supportive traffic/utilisation environment. The upgraded BUY call and target price of SGD3.80 offer actionable insight for those seeking to capitalise on the recent price correction and improved risk/reward profile.
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.sg/treasures/investments/research-market-insights
