SIA

SIA: Has been seeing new revenue through geographical expenses and ancillary sources. OCBC guides some will start contributing modestly in FY14, but thinks that initiatives to boost profits in current environment will be limited, if any. Iniatives include: 1) NokScoot (2H14) – Fate might be decided by Thai political landscape, and competition with Thai AirAsiaX 2) Tata-SIA JV (Sep-14) – Might not be able to operate international flights until 5 years later. Meanwhile local competition is intense. 3) KrisFlyer Spree (online shopping mall) OCBC maintains Hold on SIA with TP of $9.50