> Correct me if I'm not wrong, ST Eng provides some upgrades and refurbishment for military aricrafts such
> as the F5 Tigershark as well as the A4 Super Skyhawk to various 3rd world countries airforces
SIA engineering does not want to go into a space it cannot compete so hard against ST or other military aircraft service companies. Enough biz for it to fight... Very hard to make $ against SAF...
> Correct me if I'm not wrong, ST Eng provides some upgrades and refurbishment for military aricrafts such
> as the F5 Tigershark as well as the A4 Super Skyhawk to various 3rd world countries airforces
SIA engineering does not want to go into a space it cannot compete so hard against ST or other military aircraft service companies. Enough biz for it to fight... Very hard to make $ against SAF...
3Q 2012 are out. The attached press release summarizes the results in a Table format.
Revenue increased +12.6% for 3Q 2012 to a new record high $303.4 million, but operating profit was dragged down -17.7% by higher costs. Share of profits from associates and JV saw a good increase of +20% to $40.7 million, and for 9M 2012 there was a +7% increase to $118.4 million. As a result, profit attributabloe to shareholders for 3Q 2012 increased +5.3% to $63.5 million.
More interestingly, however, are the cash flows (these are in the main announcement and not the press release). OCF for 3Q 2012 was $40.4 million against $71.7 million a year ago, while ICF was $24.8 million against last year's $39.0 million. FCF for 3Q 2012 was thus $$65.2 million against $110.7 million a year back. This would seem to indicate that there might be a potential cut in the final dividend due to lower cash flows? It is good to note that for FY 2011, a special dividend of 10 cents/share was paid in addition to 14 cents/share final dividend, as a result of the large surge in cash coming in. Without the large surge, and assuming the cash flows normalize for SIAEC, would it still be possible for them to at least maintain the 14 cents/share final dividend?
In my computations, I had estimated a potential cut of 20% for full-year dividend to 16 cents/share for conservatism. Thus, I project a final dividend of 10 cents/share. Based on the last closing price of $3.60 per share, this would represent a yield of 4.4%, which is still not shabby for a stable blue-chip company with no debt. If we assume no change in dividends from last year, the yield would jump to 5.6%.
(Vested)
Put it simply, if The Company maintains the same final quarter earnings as the previous 3 quarters, I'm looking forward to a better bonus this year.
(03-02-2012, 12:38 AM)Musicwhiz Wrote: [ -> ]3Q 2012 are out. The attached press release summarizes the results in a Table format.
Revenue increased +12.6% for 3Q 2012 to a new record high $303.4 million, but operating profit was dragged down -17.7% by higher costs. Share of profits from associates and JV saw a good increase of +20% to $40.7 million, and for 9M 2012 there was a +7% increase to $118.4 million. As a result, profit attributabloe to shareholders for 3Q 2012 increased +5.3% to $63.5 million.
More interestingly, however, are the cash flows (these are in the main announcement and not the press release). OCF for 3Q 2012 was $40.4 million against $71.7 million a year ago, while ICF was $24.8 million against last year's $39.0 million. FCF for 3Q 2012 was thus $$65.2 million against $110.7 million a year back. This would seem to indicate that there might be a potential cut in the final dividend due to lower cash flows? It is good to note that for FY 2011, a special dividend of 10 cents/share was paid in addition to 14 cents/share final dividend, as a result of the large surge in cash coming in. Without the large surge, and assuming the cash flows normalize for SIAEC, would it still be possible for them to at least maintain the 14 cents/share final dividend?
In my computations, I had estimated a potential cut of 20% for full-year dividend to 16 cents/share for conservatism. Thus, I project a final dividend of 10 cents/share. Based on the last closing price of $3.60 per share, this would represent a yield of 4.4%, which is still not shabby for a stable blue-chip company with no debt. If we assume no change in dividends from last year, the yield would jump to 5.6%.
(Vested)
I reckon that the yield will be comparable to last year, especially when SIA is not as profitable when compared to 2010.
(03-02-2012, 09:26 PM)csl123 Wrote: [ -> ]I reckon that the yield will be comparable to last year, especially when SIA is not as profitable when compared to 2010.
Even if SIA isn't as profitable as last yr, the planes held by SIA still needs to be maintained every single day. Now with Scoot coming on board, SIAEC will have more work to do which means higher revenue. It will turn into a cause for concern only when SIA decommissions many of its aircrafts to cut costs. If not, I don't think SIAEC will be affected that much.
just a speculation on my part - given that SIA owns 80% of SIA EC, won't it require some dividends to boost its earning given its poor showing in the FY? at 80%* $0.14*1.1b= $123 million profit
<vested>
(04-02-2012, 08:29 AM)shanrui_91 Wrote: [ -> ]just a speculation on my part - given that SIA owns 80% of SIA EC, won't it require some dividends to boost its earning given its poor showing in the FY? at 80%* $0.14*1.1b= $123 million profit
<vested>
you mean boosting its cash flow and balance sheet?
SIA EC's earning already consolidated into SIA's earning.
correct me if i am wrong then, but what i mean is that dividend from SIA EC will be counted as a profit item under SIA profit, since SIA is entitled to 80% of the total amount of dividend from its 80% share
(04-02-2012, 09:47 AM)shanrui_91 Wrote: [ -> ]correct me if i am wrong then, but what i mean is that dividend from SIA EC will be counted as a profit item under SIA profit, since SIA is entitled to 80% of the total amount of dividend from its 80% share
SIA EC is a subsidiary of SIA. SIA will recognize its part of its profit in its statement already. dividend from SIA EC does not form part of the profit for SIA Group, as its earning already being recognized.