SIA

SIA: HSBC has Overweight Call with $19 TP. Note that SIA one of top picks among Asian conglomerates & transport stocks, as it remains positive on passenger driven airlines, hotels and conglomerates leveraged to Asian consumption….

Expect Asian airline coverage to generate an aggregate 2010 recurring profit of US$6.8b, a sharp rebound from recurring losses in 2009, driven by a strong pick-up in passenger and cargo demand which has boosted load factors and yields. Add that while airline outlook remains good, tips 2011 profit growth to stall, largely as expects cargo profit to fall on year; but says SIA more passenger focused, has significant net cash balances, is best value Asian airline…

Note that at target, SIA would trade at 12X FY12E P/E, 1.4X P/BV, with a FY12E dividend yield of 5%.