Singapore Airlines (C6L.SG) is off 1.1% at $14.88, in line with a broadly weaker market, despite below-consensus 3Q results, with management noting a cloudy outlook. UOB KayHian says SIA’s “strong grip on its costs” could support its stock near term; the house notes passenger unit costs were at 8.6 cents/ASK, against its forecast of 9.0 cents/ASK; “This suggests that SIA had hedged a substantial portion of fuel requirements.”
Posts Tagged ‘L.SG’
Singapore Airlines 3Q net profit likely fell
January 27th, 2011 |
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Singapore Airlines (C6L.SG) is likely to report 3Q net profit of $371 million from $403.7 million a year earlier as the carrier is likely to provide for a fine for price fixing on air cargo shipments, according to a Dow Jones Newswires poll of five analysts.
SIA +0.1%; UOB KayHian tips $14.30 entry price
January 18th, 2011 |
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Singapore Airlines (C6L.SG) +0.1% at $15.30, rebounding slightly after two sessions of declines, despite posting a decline in December overall load factor to 69.8% vs November’s 70.1%. But a meagre volume of just 97,000 shares traded suggests investors would rather wait for the carrier’s fiscal 3Q results, due Jan. 28, before taking strong positions.
DMG optimistic on SIA’s China Cargo stake buy
December 21st, 2010 |
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DMG says it’s optimistic on the potential arising from Singapore Airlines’ (C6L.SG) acquisition of a 16% stake worth $65 million in China Cargo Airlines, announced Monday.
“While management has not provided any guidance on the outlook specifics, SIA’s pivotal role in the route optimization of China Cargo Airline’s freighter carriers could potentially see SIA offering direct connectivity between China and Singapore (and Asean for the matter) and Australia, while China Cargo Airlines would be dedicated to traffic in/from the mainland China region.”
SIA target raised by Goldman Sachs; More sanguine cargo outlook
December 21st, 2010 |
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Goldman Sachs downgrades the Asian airline sector to Neutral from Attractive following the sector’s outperformance in 2H 2010.
“Our downgrade is underpinned by three key reasons: (1) slower traffic growth momentum expected; (2) rising unit costs to result in margin pressure; and (3) sector appears fairly valued.”
Says investors should be selective in 2011, prefers Buy-rated Cathay Pacific (0293.HK), Singapore Airlines (C6L.SG), and CEA H- (0670.HK) and A-shares (600115.SH).
SIA downgraded by UOB KayHian; "Dismal" Nov traffic growth
December 16th, 2010 |
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UOB KayHian downgrades Singapore Airlines (C6L.SG) to Hold from Buy and cuts its target price to $15.90 from $18.00 after the carrier’s November passenger traffic growth was a "dismal" 1.1% on year.
"For the past two months, growth averaged 0.3% and 4Q is a traditional peak period for SIA. This number does not lend much confidence to SIA’s growth prospects."
Plenty of reasons to buy Asian carriers: DBS Vickers
December 13th, 2010 |
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Singapore Airlines (C6L.SG) +0.9% at $15.84, Tiger Airways (J7X.SG) +1.1% at $1.87, faring better than the broader market though with both stocks are trading in low volume.
DBS, which rates the former at Buy, the latter at Hold, says there are “plenty of reasons to buy into regional airlines,” with the earnings rebound they enjoyed in 2010 likely to continue into 2011, albeit at a slower pace.
SIA Engineering flat; SilkAir job discounted
December 10th, 2010 |
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SIA Engineering (S59.SG) surrenders its earlier rise to $4.31 and is now flat at $4.27, as the renewal of a fleet maintenance contract worth $300 million with SilkAir, the regional arm of SIA (C6L.SG), fails to inspire.
SIA kept at Overweight by HSBC; Sector top pick
December 7th, 2010 |
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HSBC says Singapore Airlines (C6L.SG) one of top picks among Asian conglomerates, transport stocks, as remains “positive on passenger driven airlines, hotels and conglomerates leveraged to Asian consumption.”
SIA +0.3%; Market, analysts shrug off provisions
December 2nd, 2010 |
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Singapore Airlines (C6L.SG) +0.3% at $15.88, extending yesterday’s 2.7% rise which came despite news carrier setting aside $61.92 million this FY to pay fine in US relating to cargo price fixing investigation.
SIA +3.1%; No changes to view from fine: DMG
December 1st, 2010 |
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Singapore Airlines (C6L.SG) +3.1% at $15.90 vs STI +0.7%, rising sharply with solid 2.0 million shares traded, despite statement it will pay fine of US$48 million ($60.6 million) to US Department of Justice relating to charges of price fixing of air cargo, stemming from investigations from 2006.
SIA +0.8%; Provisions for fines appear priced in
December 1st, 2010 |
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Singapore Airlines (C6L.SG) bucking declines by most other blue chips, +0.8% at $15.54 despite hit to bottomline stemming from $61.9 million provision to be made for current FY.
Fine imposed by US Department of Justice following its investigation into air cargo industry in 2006 for price fixing. News comes 3 weeks after SIA said it will make $134 million provision in current FY for fine imposed by European Commission, which ruled airline’s cargo unit involved in global price-fixing conspiracy.
SIA target raised to $19.50 from $16.50 by UBS
November 24th, 2010 |
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UBS raises Singapore Airlines (C6L.SG) target price to $19.50 from $16.50 based on target P/BV of 1.57x, keeps Buy call.
Says SIA share price has underperformed Asian peers, +7% year-to-date vs +11%, +60% in MSCI AxJ Index, Cathay Pacific’s (0293.HK) share price, respectively.
Notes, stock trading at 10x FY12E EPS, 4x EV/EBITDA, 1.2x FY12E book value, discount to mid-cycle, peer valuations, and 5% dividend yield.
“SIA has been recovering at a slower pace in this cycle. This was likely due to its modest capacity growth and fleet reconfiguration, smaller exposure to north Asia, and competition from low cost and Gulf carriers. However, we think its business model remains solid and estimate 28% year-on-year growth in pre-ex EPS in FY12.”
Raises FY11/12/13 EPS forecasts 5%-20%, revises FY11 passenger, cargo yield assumptions upward, lowers FY11/12 operating cost estimates due to stronger SGD vs USD. Shares +0.1% at $15.56.
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Singapore hospitality sector to end year strongly: DBS Vickers
November 23rd, 2010 |
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DBS Vickers says Singapore hospitality sector to end 2010 on high note, approaching year-end holiday season, year-to-date arrivals of 8.6 million within 69%-75% of Singapore Tourist Board’s 11.5-12.5 million target, “which we believe is achievable.”
Notes arrivals in coming months likely stronger vs prior years with Universal Studios one of major crowd pullers. “From 4Q10, RWS will unveil a slew of new attractions and rides in USS while Singapore will be geared up to host larger conferences and meetings throughout the course of 2011.”
Tips visitor arrivals to hit new peak of 13 million in 2011, translating to estimated demand of 11.8 million room nights. Hospitality-related stocks to continue delivering strong earnings; top picks, all rated Buy: CDL Hospitality Trusts (J85.SG) with $2.28 target; Ascott REIT (A68U.SG) with $1.38, UOL (U14.SG) $5.22, SIA (C6L.SG) $18.74, Genting Singapore (G13.SG) $2.70, Asiatravel (5AM.SG) $0.63.
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STI down 0.2% as at 9:21 a.m.; Market lacks conviction: Kim Eng
November 23rd, 2010 |
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Singapore shares slips on negative Wall Street cue.
“Expect range-bound trading today,” says Kim Eng Securities; “the STI has been slow in pushing to the upside and has failed to close above the 3200 level, indicating a lack of conviction.”
Benchmark off 0.2% at 3,183.98, likely to hold above current 3,150 November trough. Attention mainly on small caps, with most active being Gallant Venture (5IG.SG), +9.8% at $0.28, after Kim Eng Securities’ initiation at Buy with $0.75 target.
Other actively-traded stocks include EcoWise (5CT.SG), +4.0% at $0.13, Top Global (519.SG), +33.3% at $0.02, Bio-Treat (B22.SG), down 28.6% at $0.05. Among blue chips, Singapore Airlines (C6L.SG) down 1.5% at $15.72 as stock trades ex-dividend.
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Buy Singapore O&M, commodity plays: DBS
November 22nd, 2010 |
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While Singapore market consolidates during year-end lull, stocks in offshore & marine, commodities, hospitality sectors could outperform, says DBS Vickers.
Expects Keppel (BN4.SG), SembMarine (S51.SG), Cosco (F83.SG) to benefit from higher capex as oil majors increase exploration & production activity in 2011.
Amid USD weakness, strong demand from China, house tips CPO prices to resume uptrend from end-2010 through to 1Q11, in turn benefiting commodity plays like Indofood Agri (5JS.SG), First Resources (EB5.SG); says supply shortage arising from seasonal fall in yields in January-February next year, plus potentially lower soybean yields due to La Nina effect, could further fuel shares of such companies.
On hospitality front, expects Genting Singapore (G13.SG), SIA (C6L.SG), UOL (U14.SG), CDL Hospitality (J85.SG) to gain from robust Singapore tourist-arrivals; “we expect the peak year-end holiday season for 2010 to be stronger than prior years with Universal Studios @ Sentosa to be the main crowd puller for tourists.”
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SIA off 0.1%; Demand likely firmer year end: Citi
November 16th, 2010 |
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Singapore Airlines (C6L.SG) off 0.1% at $15.88 in thin trade, mirroring marginal moves by other Singapore blue chips, according to Dow Jones.
Investors appear to be paying little heed to carrier’s mixed October operating data.
Still, business performance for rest of 2010 may be more promising given traditionally stronger year-end travel demand. Last month’s 79.6% passenger load factor lower than 81.1% in October last year, September’s 80.3%.
“Typically, October-December is seasonally stronger for passenger traffic as we head into the holiday season, but improving yields are key to profitability,” says Citigroup analyst Robert Kong.
October’s cargo load factor tad better at 66.4% vs 65.4% last year, 63.5% in September. Immediate support at current November low of $15.70.
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JPMorgan raises SIA target to $20 from $17
November 10th, 2010 |
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JPMorgan raises Singapore Airlines (C6L.SG) target to $20.00 from $17.00 on rollover to 1.6X December 2011 P/BV. Keeps at Overweight. Trims FY11-13 earnings estimates by around 11%, mainly to factor in higher average fuel prices.
SIA Engineering kept at Sell, SIA at Buy: UOB KayHian
November 8th, 2010 |
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With question marks over Rolls Royce’s Trent 900 engines after last week’s Qantas QF32 engine failure, UOB KayHian says key question is whether Trent 900 series has inherent design flaw or inadequate maintenance was the cause, says Dow Jones.
UOB KayHian notes SIA Engineering (S59.SG) has 50:30:20 SAESL JV with Rolls Royce, HAESL. SIAEC “should benefit from higher maintenance checks. However, if the cause of the engine failure is shown to be linked to a design flaw, this could lead to substantial risk for the OEM and SIAEC.”
Broker tips SAESL JV accounts for about 12% of PBT. Notes, Singapore Airlines (C6L.SG) A380s about 12% of passenger capacity; worst case, “SIA could replace the engines with another OEM, but that could lead to significant downtime and potentially even lower residual value on the A380s.” Could impact plans to sell, lease back some A380s. Keeps SIAEC at Sell, SIA at Buy.
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Singapore Airlines 2Q net profit likely at $395m
November 8th, 2010 |
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Singapore Airlines (C6L.SG) likely to report $395 million 2Q net profit vs $158.8 million loss year ago on higher traffic, lower jet fuel prices, according to median forecast of Dow Jones poll of six analysts, says Dow Jones.
Revenue likely +18% at S$3.63 billion, according to estimates of 4 analysts.
“We believe a continuous earnings and yield recovery in the coming quarters will lead to improved investor sentiment on the stock,” Daiwa says in note; advises switch to airline vs high-valuation peers. Singapore Airlines to release 2Q results after market hours Tuesday.
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