*Company update* 🏢 *SIA Engineering Co. Ltd (SIE SP/ S59.SI)* • *Flight recovery nearing pre-Covid levels.* SIAEC reported that total flights handled by the company’s line maintenance business reached 97% of pre-COVID level at the end of FY24/25. Flights handled in the 4Q25 caught up to 99% of pre-COVID volume. Increased flight activities contributed to a higher demand for aircraft maintenance, repair, and overhaul (MRO) services. This uptrend is expected to continue as more airlines ramp up flight schedules, alongside the arrival of the summer travel season. • We maintain an *OUTPERFORM* recommendation and increase our TP to *S$2.83* , representing an upside of 10.2% based on Discounted Cash Flow (DCF) valuation, with a terminal growth rate of 2.0% and a WACC of 8.6%. Read the full report here: https://www.kgieworld.sg/research/siaengineering-may23