Singapore Airlines - CGS-CIMB Research 2022-03-25: No More VTL Caps; No More Quarantine

Singapore Airlines - No More VTL Caps; No More Quarantine

  • Singapore announced a major transition to the endemic stage by essentially opening up VTLs to the whole world and for all flights from 1 Apr 2022F.
  • The implementation of the Vaccinated Travel Framework (VTF) from 1 Apr is a major positive for SIA (SGX:C6L), mainly because of the removal of the VTL quota, which is an artificial limit on the number of quarantine-free travellers that Changi Airport can receive.
  • Our end-CY22F target price for SIA remains at S$5.88, still based on an unchanged target P/BV multiple of 1.06x (1 standard deviation above the mean since 2011 of 0.93x), applied to the end-FY23F adjusted BVPS.
  • We use a P/BV that is above the mean to reflect our optimism over the meaningful reopening of international travel markets by mid-CY22F. Valuing SIA at a P/BV mean of 0.93x (since 2011) yields a fair value per share of S$5.16.
  • Other potential rerating catalysts for SIA include possible near-term strength in cargo yields. See: Singapore Airlines - Near-term Cargo Yield Upside.

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 | 2022-03-25

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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