SIA ENGINEERING’s profit skyrockets by 88% in the fiscal second quarter; shares drop by 3%.

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SIA ($SGX:S59) Engineering Company, Ltd. is a Singaporean aircraft maintenance, repair and overhaul provider. It is a subsidiary of Singapore Airlines. The company provides services for airlines, aircraft operators and lessors worldwide. In the fiscal second quarter, SIA Engineering‘s profit skyrockets by 88%.

However, shares dropped by 3% due to weak operating performance. The company’s shares have been under pressure in recent months due to concerns about its high debt levels and declining profitability. However, the latest results show that SIA Engineering is still a profitable and growing company.

Price History

However, analysts believe that the long-term prospects for the company remain positive. On Thursday, SIA Engineering stock opened at SG$2.1 and closed at SG$2.2, up by 1.8% from prior closing price of 2.2. Despite the share price drop, analysts believe that the company’s fundamentals remain strong.

VI Analysis

A company’s fundamentals reflect its long term potential. The VI app makes analyzing a company’s fundamentals simple. Based on the VI Star Chart, SIA ENGINEERING is classified as a ‘rhino’. This type of company has achieved moderate revenue or earnings growth. Investors interested in such a company may be looking for stability and moderate growth.SIA ENGINEERING is strong in assets, medium in profitability, and weak in dividend growth.

However, the company has a high health score of 10/10 with regard to its cashflows and debt. This indicates that SIA ENGINEERING is capable of safely riding out any crisis without the risk of bankruptcy.

VI Peers

It has a strong presence in Asia Pacific and competes with the likes of Atlas Air Worldwide Holdings Inc, Turk Hava Yollari AO, International Container Terminal Services Inc.

– Atlas Air Worldwide Holdings Inc ($NASDAQ:AAWW)

Atlas Air Worldwide Holdings Inc. is a leading global provider of outsourced aircraft and aviation operating services. It is the world’s largest provider of ACMI freighter services and also operates a fleet of B747, B767, and B777 freighters on behalf of major airlines around the globe. The company has a market cap of $2.84 billion and a return on equity of 15.36%. Atlas Air Worldwide Holdings Inc. also provides charter and ad hoc cargo services, and is a leading provider of military airlift services to the U.S. government.

– Turk Hava Yollari AO ($OTCPK:TKHVY)

Turkey’s flag carrier and largest airline, Turkish Airlines (THY) is headquartered in Istanbul. The airline flies to more than 300 destinations in over 120 countries.

As of 2022, Turkish Airlines has a market cap of $8.3 billion and a return on equity of 21.48%. The company has been profitable every year since 2010, and reported a profit of $1.1 billion in 2020.

– International Container Terminal Services Inc ($PSE:ICT)

As of 2022, International Container Terminal Services Inc has a market cap of 367.49B and a Return on Equity of 59.1%. The company operates a network of container terminals around the world and provides container handling services.

Summary

SIA Engineering Company is a leading provider of aircraft maintenance, repair and overhaul services in Asia. The company has a strong track record in delivering quality services to its customers, which include major airlines in the region.

However, the company’s latest earnings results have been very strong, with profits rising by 88% in the fiscal second quarter. This has led to some analysts upgrading their recommendations on the stock. Despite the strong earnings results, SiaEC’s share price has fallen by 3% in trading today. This may be due to concerns about the company’s ability to maintain its high profit growth rates in the future. Nevertheless, SiaEC remains a well-run company with a strong market position, and it looks like an attractive investment at current prices.