Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
DBS Vickers Securities in a Nov 4 research report says: "SIA's 2Q12 EBIT declined 64% y-o-y to $123 million despite a modest 2% increase in revenue to $3.7 billion, as fuel costs rose 29%.
"However, due to higher non-operating income of $53 million versus $18 million a year ago, net profit posted a smaller decline of 49% to $194 million. For 1H12, net profit declined 62% y-o-y to $239 million. An interim dividend of 10 cents was declared (1H11: 20 cents).
"FY2012F and FY2013F earnings are cut by 27% and 17% to $685 million and $893 million respectively on lower yield assumptions. We lower our target P/B valuation multiple for SIA to 1x P/B, against FY2013F ROE of 6.7%. Target price of $11.20. DOWNGRADE TO HOLD."
Company Name: SINGAPORE AIRLINES LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 11.20 |
DBS Vickers Securities in a Nov 4 research report says: "SIA's 2Q12 EBIT declined 64% y-o-y to $123 million despite a modest 2% increase in revenue to $3.7 billion, as fuel costs rose 29%.
"However, due to higher non-operating income of $53 million versus $18 million a year ago, net profit posted a smaller decline of 49% to $194 million. For 1H12, net profit declined 62% y-o-y to $239 million. An interim dividend of 10 cents was declared (1H11: 20 cents).
"FY2012F and FY2013F earnings are cut by 27% and 17% to $685 million and $893 million respectively on lower yield assumptions. We lower our target P/B valuation multiple for SIA to 1x P/B, against FY2013F ROE of 6.7%. Target price of $11.20. DOWNGRADE TO HOLD."
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