<div id="readability-page-1"><div>[SINGAPORE] Analysts are turning bullish on SIA Engineering on the back of easing supply-chain constraints and new growth initiatives, with at least two brokerages upgrading their calls on the counter following the release of its first-half results.CGS International (CGSI) on Thursday (Nov 6) upgraded its call on the counter to “add” from “reduce”. UOB KayHian also upgraded its call on the Singapore Airlines subsidiary to “buy”.In CGSI’s analyst Raymond Yap’s report, he noted the rating upgrade comes as the outlook for the company has improved with the easing of constraints on parts and materials supply chains, which have enabled the company to raise its output of engines and component repairs.Yap raised his target price on the counter to S$4 from S$3.10.In its earnings for the quarter ended September, the maintenance, repair and overhaul (MRO) provider reported a 13.5 per cent rise in net profit to S$40.4 million for the period; this made for a core net profit of S$83.4 million for the first half of the year. CGSI and UOB KayHian (UOBKH) deemed this “in line with expectations”; analysts from DBS assessed this to be “slightly ahead of expectations, supported by improved pricing and stronger associates”. Analysts noted that the profit growth was partly offset by a S$4 million impairment on an onerous contract and gestation costs from new expansion projects. Those gestation costs are, however, projected to taper off with stronger growth momentum.CGSI’s Yap noted these expansion costs relate to SIA Engineering’s new line maintenance business in Cambodia and its new Base Maintenance Malaysia (BMM) venture, but viewed them as “investments for long-term growth in a global MRO market that continues to experience robust demand”.UOB KayHian analyst Roy Chen said: “Management has observed a notable improvement in spare parts supply in H1 FY2026 ... and expect this improving trend to continue into FY2027; this should support SIA Engineering’s earnings outlook.”Chen raised his target price to S$3.92 from S$3.41, noting that the earnings uplift from the improvement in the supply chain could “largely mitigate” the near-term gestation cost drags.Analysts are focused on these new growth initiatives. CGSI noted that the BMM venture would start operations by December 2025 and could increase the company’s heavy-maintenance capacity by approximately 40 per cent once its second hangar is running.DBS analyst Jason Sum, who maintained his “buy” call, cited the development of new engine and component capabilities, the ramp-up of the base maintenance of its facility in Subang, and the new MRO joint ventures in Malaysia and Cambodia as key drivers for medium-term earnings.He noted the group’s significant financial flexibility, given its “robust net cash position” of S$485 million; this liquidity, he said, provides room to enhance shareholder returns through higher dividends or buybacks, supporting long-term value creation. “The street continues to underestimate SIA Engineering’s medium-term earnings potential,” Sum said. He raised his target price to S$4.00 from S$3.50.</div></div>

新航工程

分析師因 SIA Engineering 的增長和供應鏈前景改善而上調了其股票評級。CGS International 將其評級提高至 “增持”，UOB KayHian 則提高至 “買入”，原因是該公司報告了上半年淨利潤增長 13.5%。分析師指出，供應限制有所緩解，並且公司推出了新的增長舉措，包括在柬埔寨和馬來西亞的擴張項目。目標價格也有所上調，CGSI 將其設定為 4 新加坡元，UOB KayHian 則設定為 3.92 新加坡元，反映出對公司中期盈利潛力和財務靈活性的信心

由於增長和供應鏈前景的改善，分析師上調了新航工程的股票評級