SIA

SIA: CIMB maintains Neutral with $10.50 TP, following SIA’s latest JV with Tata Sons. House believe that this is a positive step for SIA, although any benefits are unlikely to accrue until the new airline has been established. No timeline has been set for this yet. While SIA has sufficient cash to invest in its latest venture, this development reinforces view that gains on the sale of its Virgin Atlantic stake will not be fully distributed to investors.