Singapore Airlines - CGS-CIMB Research 2022-03-17: Near-term Cargo Yield Upside

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 @

Raymond YAP CFA CGS-CIMB Research | 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.

Price targets by 3 other brokers at SIA Target Prices.
Listing of research reports at SIA Analyst Reports.

Relevant links:
SIA Share Price History,
SIA Announcements,
SIA Dividends & Corporate Actions,
SIA News Articles

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