Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Kim Eng Research in a July 29 research report says: "SIA posted dismal 1QFY Mar12 net earnings of just $44.7 million, down 82% from a year ago. Earnings were decimated by higher fuel costs, which increased by over $300 million alone versus the previous year.
"This is also despite the fact that revenues remained strong, up 3% y-o-y to $3.6 billion. We slash our forecasts by 45% for FY Mar12 to $798.0 million and by 18% for FY Mar13 to $1,100.7 million. This reduction is solely due to the higher fuel cost assumption and partially offset by higher yield assumptions.
"Target price of $14.40, based on a P/B of 1.2x. While earnings in the short term are at risk, SIA's balance sheet will enable it to weather the storm, as it has several times before. MAINTAIN HOLD."
Company Name: SINGAPORE AIRLINES LTD
| Research House: Kim Eng | Price Call: HOLD | Target Price: 14.40 |
Kim Eng Research in a July 29 research report says: "SIA posted dismal 1QFY Mar12 net earnings of just $44.7 million, down 82% from a year ago. Earnings were decimated by higher fuel costs, which increased by over $300 million alone versus the previous year.
"This is also despite the fact that revenues remained strong, up 3% y-o-y to $3.6 billion. We slash our forecasts by 45% for FY Mar12 to $798.0 million and by 18% for FY Mar13 to $1,100.7 million. This reduction is solely due to the higher fuel cost assumption and partially offset by higher yield assumptions.
"Target price of $14.40, based on a P/B of 1.2x. While earnings in the short term are at risk, SIA's balance sheet will enable it to weather the storm, as it has several times before. MAINTAIN HOLD."
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