• 2Q27/1H27 PATMI was largely stable, +3.0%/-1.7% YoY to S$41.6mn/S$81.9mn, and forming 23%/45% of our full year FY27e estimate. However, revenue fell 10.7%/9.7% YoY to S$331.0mn/S$658.6mn on lower pass-through materials revenue attributed to the mix of work performed (fewer material-intensive heavy checks: 37 in 1H27 vs 44 in 1H26)
• Associates' income increased 19% YoY to S$62.6mn in 1H27, attributable to Eagle Services Asia (ESA), which works on GTF engines. JV income collapsed 94% to S$1mn, due to SAESL expansion costs (staff expenses, consultancy fees, and interest expense on debt taken to fund the expansion). JV costs are expected to taper by the end of FY27/28.
• We maintain BUY with lower TP of S$3.76 (prev: S$3.90). FY27e PATMI is reduced by 3.3%, as we update our SAESL cost assumptions. 2H27e performance should benefit from easing start-up losses at BMM, whose first hangar is now at full capacity. Management does not expect gestation costs to rise when the second hangar arrives by year-end. SAESL’s expansion costs peak in FY26/27, with early revenue from the Seletar site and some cost tapering by year-end offering partial gestation relief. SIA Engineering is trading at a FY27e P/E of 18.6x (below peer comps FY27e P/E of 23.8x).

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
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Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
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