SIA

SIA: 4QFY14 results weak. Operating loss widened from $44.2m to $60.3m, while revenue was flattish at $3.6b on lower passenger and cargo carriage, and weaker yields. Both the Parent and SIA Cargo reported operating losses for the quarter. Net profit of $27m was thanks to a $70.9m tax write-back and S$19.8m of one offs, mainly from the additional stake sale of Virgin Atlantic, but that was partially offset loss at associates’ level of $33.7m on weak results by Tigerair. Special dividend of $0.25 was announced on top of final dividend of $0.11 BNP thinks that the special dividend of $0.25 on top of the final dividend of $0.11¢ should support share price. SIA is currently trading at P/B of 0.9x. FY14 yield is 4.5% Latest broker ratings as follows: Deutsche Maintains Sell with TP$8.80 BNP maintains Hold with TP $10.74