SIA Engineering

SIA Engineering: CIMB upgrade to O/p with $5.20 TP. House note that (SIE) is likely to benefit from stronger regional travel, spurred by weak currencies. The share price has pulled back by 11% from its peak in May, making it more attractive. House roll over our valuations to CY15 and upgrade TP to $5.20, still based on blended P/E and DCF. SIE is one of the top 10 non-REIT, high-yield Singaporean plays that are in a net cash position and has sustainable earnings growth prospects. House raise EPS by 2% in FY16 based on higher growth in the line maintenance business. The catalysts are better-than-expected earnings and dividends.