SIA Engineering Company

[Temperament]

Not really. Remember i told you i had chickened out from buying NOL @ about $1 or less in 2008/2009. Due to switching to dividend income investing. Not a daring younger man anymore. i am now an old man therefore don't have human capital to take on the riskier investments. i think you will do the same when you have reached my age.

[Drizzt]

haha uncle i now alreadu pretty risk adverse

[Jon-san]

The reason why sia engineering is fairly resilient lies in the fact that a,b,c,d checks of aircraft are highly regulated (In singapore, it is the CAAS). These are to be performed regularly. For e.g. for boeing 747-400, A check is done every 500 flight hours, B check is done around every 6-9 months, C check is around 15 months and D check is around 5 years.

Small correction. There are no 'B' checks.

[shanrui_91]

The reason why sia engineering is fairly resilient lies in the fact that a,b,c,d checks of aircraft are highly regulated (In singapore, it is the CAAS). These are to be performed regularly. For e.g. for boeing 747-400, A check is done every 500 flight hours, B check is done around every 6-9 months, C check is around 15 months and D check is around 5 years.

Small correction. There are no 'B' checks.

"b" check is counted into A check, so does that means that the supposedly B check has the same revenue as A check? from what I know, customers are charged according to the number of man hours provided and B check is a slight expansion of A check.

[Musicwhiz]

SIAEC's AGM was held today, but I was too busy to attend. But the Company has announced that all resolutions have been passed, and the final dividend of 15c/share has been approved. Note that the share will go XD on July 23, 2012 (Monday) and the dividend will be paid on August 10, 2012 (Friday).

SIAEC also announced today that it had been awarded a S$166 Million Contract by Cebu Air, and this is a new agreement which will cover its present and new fleet. The total revenue of SIAEC Group contracts with Cebu Air will increase to S$236 million. The announcement can be found on SGXNet.

(Vested)

[valuestalker]

SIAEC's AGM was held today, but I was too busy to attend. But the Company has announced that all resolutions have been passed, and the final dividend of 15c/share has been approved. Note that the share will go XD on July 23, 2012 (Monday) and the dividend will be paid on August 10, 2012 (Friday).

SIAEC also announced today that it had been awarded a S$166 Million Contract by Cebu Air, and this is a new agreement which will cover its present and new fleet. The total revenue of SIAEC Group contracts with Cebu Air will increase to S$236 million. The announcement can be found on SGXNet.

(Vested)

For me, take away from this agm are:
1. Candid chairman (he is conservative as well and fully knows his business).
2. A threat mentioned by chairman:
The aircraft brand owner (ie: airbus & boeing) are extending their services to provide direct mro to airline operators.
He said the trend is boeing/airbus take care of all mro of their aircrafts by charging airline operators fees per flight hour.
Then he threw an open question:
Do you think we should follow the trend/flow (by forming jv-s) or fight it?

Note: aboves are my personal observation and i might perceive his statements incorrectly.

[Jon-san]

SIAEC's AGM was held today, but I was too busy to attend. But the Company has announced that all resolutions have been passed, and the final dividend of 15c/share has been approved. Note that the share will go XD on July 23, 2012 (Monday) and the dividend will be paid on August 10, 2012 (Friday).

SIAEC also announced today that it had been awarded a S$166 Million Contract by Cebu Air, and this is a new agreement which will cover its present and new fleet. The total revenue of SIAEC Group contracts with Cebu Air will increase to S$236 million. The announcement can be found on SGXNet.

(Vested)

For me, take away from this agm are:
1. Candid chairman (he is conservative as well and fully knows his business).
2. A threat mentioned by chairman:
The aircraft brand owner (ie: airbus & boeing) are extending their services to provide direct mro to airline operators.
He said the trend is boeing/airbus take care of all mro of their aircrafts by charging airline operators fees per flight hour.
Then he threw an open question:
Do you think we should follow the trend/flow (by forming jv-s) or fight it?

Note: aboves are my personal observation and i might perceive his statements incorrectly.

In that case, will SIA sell SIAEC to Boeing or Airbus then? 6000 jobs hang on the answer to this question.

[Musicwhiz]

SIAEC has just released its 1Q FY 2013 results ended June 30, 2012.

Revenues rose +8.2% y-o-y, but due to higher staff costs, operating profits fell -0.9%. The saving grace came from share of profits from JV and associates, which increased +7.5% from $37.2m to $40m. As a result, profit attributable to shareholders increased 3% to $70.1m.

SIAEC continues to maintain a clean Balance Sheet with $574.5m in cash and just $2.2m in loans, for a net cash balance of $572.3m.

Looking over to the CFS, OCF has improved from $45m last year to $54m, while capex has not increased much (just $0.4m). Dividends received from JV and associates increased $3.7m to $36m, with ICF registering a +ve $20.1m from $13.3m last year. The result is that OCF + ICF yields $74m for 1Q 2013 compared to $58.3m last year.

Looking at the healthy cash position of SIAEC, and the fact that global aviation is still growing despite the Euro problems and China's slowdown, would it be unreasonable to expect an increased interim dividend of 7 cents/share (1H 2012: 6 cents/share) come Oct 2012?

(Vested)

[Contrarian]

Core business will continue to drop margins, as the direction is to bring the business to the JV side.
This is because the JV side allows them to go after more contracts, as it is seen as more impartial.

Mgt has agreed to consolidate JV details and make it clearer on the next Annual Report at this AGM.

[weijian]

Changi may be jilted as Qantas eyes Dubai

Australian carrier mulls link-up with Emirates that may bypass kangaroo route here ByVen Sreenivasan

[SINGAPORE] In a move that could impact the Singapore-Changi hub, Australia's Qantas Airways and Dubai-based Emirates are headed for an alliance that may see Qantas bypass Singapore as its "kangaroo route" hop-off.

Media reports in Australia say the Australian carrier is "edging closer to a transformational alliance with the Dubai-owned carrier designed to revive the Australian icon's loss-making international arm."

The Australian Financial Review said the move could result in Qantas's flights from Australia to Europe being diverted through the Middle Eastern hub of Dubai, bypassing Singapore-Changi in the process.

This would be a major change, given that Qantas has a long track record in Singapore stretching back some 70 years and is one of the biggest airline groups operating at the airport. It currently has about 130 flights each week via Changi, and together with its Jetstar unit, accounts for some 12 per cent of the traffic at Changi. Qantas is also a major consumer of ground services at Changi, and uses SIA Engineering Co for its maintenance and repair.

Full Story at http://www.businesstimes.com.sg/premium/...eyes-dubai