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Dear all, Part 2 of my Analysis of Purchase for SIA Engineering is now up on my blog! Please feel free to visit and leave comments, thanks! 
A snippet as follows:-
"Airframe Maintenance and overhaul sub-division facilities comprise of 5 hangars with a combined total of 8 bays and total floor area of approximately 43,200m2. With these facilities, we are able to provide total support solutions to our growing portfolio of third party customers.
Component maintenance and overhaul sub-division has 22 workshops which test, repair and overhaul components including those removed from the aircraft in the hangars."
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(18-09-2010, 08:53 PM)Musicwhiz Wrote: Dear all, Part 1 of my Analysis of Purchase for SIA Engineering is now up on my blog! Please feel free to visit and leave comments, thanks!
A snippet as follows:-
"SIAEC's Balance Sheet is very interesting as it contains no debt at all! One would have expected that a leading MRO player with technical capabilities would need to invest in a lot of fixed assets and hence would need a lot of gearing, but for SIAEC this is not true and this also adds to its attractiveness as an investment. Contrast this to ST Aerospace (Part 4 of this analysis) which has quite a bit of debt in its books. Apparently, capex is very manageable for the Group and is low compared to its revenues, and thus there is no need for leverage as internally generated cash flows (I will come to that in a while) are more than sufficient to cater for expansion, strategic alliances as well as staff salaries; with a lot to spare!" hi musicqhiz how did u find out about the debt data for st aerospace?
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Hi Pianist,
If you look at the AR for ST Engineering, at the back of the AR they break down the revenues into various divisions. They also include the divisional P&L as well as Balance Sheets. That was where I found out and computed the debt levels for ST Aerospace alone.
Cheers!
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October 4, 2010
SIAEC strikes Airbus MRO deal
SIA Engineering Company Ltd (SIAEC) has signed a support package contract with Airbus to provide maintenance, repair and overhaul (MRO) services for Singapore Airlines' fleet of five Airbus A340-500 aircraft. Under the six-year contract, Airbus directly procures the MRO services from SIAEC for the support of Singapore Airlines' A340-500 fleet. SIAEC is a member of the Airbus MRO network.
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Dear all, Part 3 of my Analysis of Purchase for SIA Engineering is now up on my blog! Please feel free to visit and leave comments, thanks!
A snippet as follows:-
"What's interesting is that even though share of profits did not increase evenly and steadily over the years, if we glance at cash flows (i.e. dividends) we can see a very clear upward trend over the years. Dividends starts from zero in FY 2000 and increases steadily over the years to a record S$153.3 million in FY 2010, and did not seem to be affected by the dip in share of profits for FY 2010."
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Hi Jon-San,
If you observe the cash flow generation capabilities of SIAEC, it would appear that they generate lots of FCF which can be used to pay out decent dividends year on year. Also, if you observe the dividends received from associated companies and joint ventures, this is also growing and the cash hoard is getting larger. Hence, I can safely conclude that SIAEC is paying out increasing dividends through its own operating activities.
While SIAEC has undertaken NTUC's pledge of "Cheaper, Better, Faster", this is more of a process-oriented drive to reduce costs; rather than a direct slashing of salaries and bonuses. Therefore, I do not think it is justified to say that they may have cut staff bonuses to maintain their dividend, unless you have evidence to the contrary? 
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Dear all, Part 4 of my Analysis of Purchase for SIA Engineering is now up on my blog! Please feel free to visit and leave comments, thanks!
A snippet as follows:-
"Looking at HAECO's cash flows (only 8 years were used as FY 2001's Annual Report was not available for download on the Company's website), it can be seen that there was also FCF generated every financial year, similar to SIAEC. However, unlike SIAEC, investing cash flows have been mostly negative (for the last 5 years out of the 8 years under review); and capex is also pretty high as a % of revenues as it more recently (in the last 5 years) averaged about 17.6%. On the other hand, SIAEC's capex averaged just 5% of revenues for the ten years under review, which demonstrates the robustness of SIAEC's strategy of using alliances and joint ventures to reduce capex commitments for the Group."
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Business Times - 03 Nov 2010
SIAEC's Q2 profit up 8.8% at $66.5m
SIA Engineering Company (SIAEC) has posted a net profit of $66.5 million for its second quarter ended Sept 30, 2010, up 8.8 per cent from a year ago.
Revenue rose 11.7 per cent to $277.1 million, mainly due to an increase in airframe and component overhaul work, fleet management programme revenue and material usage. Earnings per share for the quarter increased 8 per cent to 6.11 cents.
The group has declared an interim dividend of six cents per share, an increase of one cent per share over last year's interim dividend.
SIAEC said that the share of profits from associated and joint venture companies increased 18.1 per cent to $37.8 million. This represented a contribution of 49.7 per cent to the group's pre-tax profits.
The group posted an operating profit of $34.4 million for the second quarter, a decline of 2 per cent compared to the previous quarter, which had the benefit of the jobs credit scheme, it said.
Expenditure saw an increase of $29.7 million or 13.9 per cent to $242.7 million, mainly caused by higher sub-contracting, staff and material costs.
For the first half ended Sept 30, 2010, SIAEC's net profit was up 29.3 per cent at $137.3 million. Revenue came to $565.4 million, 14.8 per cent higher.
Looking ahead, SIAEC said: 'Given the strong performance in the first half, the group's performance in the second half is expected to moderate.'
The group has no borrowings and its cash balance as at Sept 30, 2010 amounted to $406.7 million
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(03-11-2010, 06:53 AM)Musicwhiz Wrote: Business Times - 03 Nov 2010
SIAEC's Q2 profit up 8.8% at $66.5m
SIA Engineering Company (SIAEC) has posted a net profit of $66.5 million for its second quarter ended Sept 30, 2010, up 8.8 per cent from a year ago.
Revenue rose 11.7 per cent to $277.1 million, mainly due to an increase in airframe and component overhaul work, fleet management programme revenue and material usage. Earnings per share for the quarter increased 8 per cent to 6.11 cents.
The group has declared an interim dividend of six cents per share, an increase of one cent per share over last year's interim dividend.
SIAEC said that the share of profits from associated and joint venture companies increased 18.1 per cent to $37.8 million. This represented a contribution of 49.7 per cent to the group's pre-tax profits.
The group posted an operating profit of $34.4 million for the second quarter, a decline of 2 per cent compared to the previous quarter, which had the benefit of the jobs credit scheme, it said.
Expenditure saw an increase of $29.7 million or 13.9 per cent to $242.7 million, mainly caused by higher sub-contracting, staff and material costs.
For the first half ended Sept 30, 2010, SIAEC's net profit was up 29.3 per cent at $137.3 million. Revenue came to $565.4 million, 14.8 per cent higher.
Looking ahead, SIAEC said: 'Given the strong performance in the first half, the group's performance in the second half is expected to moderate.'
The group has no borrowings and its cash balance as at Sept 30, 2010 amounted to $406.7 million
looking at this, i SHOULD be getting a bigger bonus for this year then...
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