SIA

SIA: StanChart maintains UNDERPERFORM with TP of $10.80. StanChart notes that Passenger yield remains under pressure for all segments, as SIA now targets to increase revenue by implementing its four-brand strategy to capture more traffic volume. House thinks structural competition issues will cap SIA's profitability and share price. Since FY13 began, SIA has expanded capacity slightly more aggressively than before, although premium travel demand has slowed. House is concerned about SIA's ability to boost fares significantly even once demand returns, as its premium positioning is being cannibalised.