Singapore Airlines - Near-term Cargo Yield Upside
- SIA (SGX:C6L) hosted an analyst briefing to speak about its air cargo strategy on Tuesday, and highlighted how market developments are working in its favour.
- The Russia-Ukraine war and the COVID-19 lockdowns in China will likely raise cargo yields in Mar 2022, after the seasonally-weak Lunar New Year period.
- High oil prices from late-Feb onwards will not materially affect SIA’s 4QFY22F (Jan 2022 to Mar 2022) performance, as jet fuel is usually priced with a one-month lag.
- Our forecasts for SIA's FY22 (Apr 2021 to Mar 2022) remain intact despite expensive fuel. Reiterate ADD call on SIA with an unchanged target price of S$5.88, still based on FY23F P/B of 1.06x (+1 standard deviation from the mean since 2011) on our adjusted BVPS (book value per share).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Raymond YAP CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-17 2022-03-17
Read also CGS-CIMB's most recent report:
2023-01-16 Singapore Airlines (SIA) - Time To Pocket Share Price Gains.
Previous report by CGS-CIMB:
2022-12-06 Singapore Airlines - Merger Of Vistara & Air India ~ Better Than Standing Alone.