SIA

SIA: (S$11.77) Bright FY16 outlook but all priced in
Maybank-KE expects profits to kick in for its upcoming 4QFY15 results (14 May), with core net profit estimated at $165.7m vs core net loss of $0.9m in 4QFY14.

House is optimistic on the outlook for FY16, underpinned by healthy global demand, recovering cargo market and the lower jet fuel price.

In addition, subsidiaries Scoot and Tigerair could boost SIA's bottom line, with:
- considerable scale at Scoot with seven aircraft; and
- Tigerair's substantial reduction of operational losses thanks to capacity cuts and better cost management.

However, Maybank-KE has downgraded SIA's rating to HOLD (from BUY) as the current share price presents little upside to its TP of $12.00/share.