- 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.
- 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).
- 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.
This is a partial preview of the article. The complete article, including further analyst commentary on the outlook, valuation, dividend forecast, stock rating, target price, and more, is available on SGinvestors.io.
Read the complete article on SGinvestors.io.
Liu Miao Miao Phillip Securities Research | https://www.poems.com.sg/ 2025-08-01
Read also Phillip's most recent report:
2026-07-31 Singapore Airlines - Hedged The Spike In Fuel.
Previous report by Phillip:
2026-05-19 Singapore Airlines - Weighed Down By Associates.
Price targets by 4 other brokers at SIA Target Prices.
Listing of research reports at SIA Analyst Reports.
Relevant links:
SIA Share Price History,
SIA Announcements,
SIA Dividend Payout Dates & Corporate Actions,
SIA News
