Brokers' take

SIA Engineering | Hold

Target price: S$3.63

Oct 6 close: S$3.77

OCBC Investment Research, Oct 6

SIA Engineering Co (SIAEC) announced earlier this week the completion of the amalgamation of the joint ventures (JVs) it has with Rolls-Royce Singapore (RRS), namely Singapore Aero Engine Services Pte Ltd (SAESL) and International Engine Component Overhaul Pte Ltd (IECO). SAESL will be the surviving entity. Recall that SIAEC had, just earlier this year, completed the divestment of its 10 per cent stake in Hong Kong Aero Engine Services Ltd (HAESL), which is a JV between Hong Kong Aircraft Engineering Company Ltd (HAECO) and RRS. As IECO also overhauls and repairs aero engine components, SIAEC said that the …