SIA's share price is currently trading at FY26e P/B of 1.3x, which we view as overvalued. We cut our FY26e PATMI forecast by 30% to account for the more severe-than-expected loss from associates, while maintaining our REDUCE call with a lower SIA's target price of S$5.94 (previously S$6.08), based on 1.1x FY25e P/B.
- Read this at SGinvestors.io -
SIA's 1QFY26 PATMI (ex-associates)/with associates declined by 31.9% y-o-y / 58.8% y-o-y to S$308mil / S$186mil, underperforming our expectations and forming 12% / 21% of full-year estimates. The decline was mainly due to lower interest income (-S$61mil) and a S$122mil share of losses from associated companies (Air India).
- Read this at SGinvestors.io -
While passenger and cargo yields remain under pressure amid ongoing geopolitical tensions and rising costs, demand for air travel remains resilient.
The Positives
Record passenger carriage.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Use Trust Referral Code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank savings account this December: ✨Earn up to S$1,000 cashback reward 🎟 and win an XPENG G6 SUV 🚙 !
