SIA

UOBKH is maintaining its Buy call on SIA despite cutting its TP to $13.90 from $14 on continued troubles in its cargo segment which continues to see lower cargo yields.

However, in light of its strong 3QFY16 results and q/q improvement in passegner yields, the house feels that FY17 earnings will likely improve further on:
1. Unwinding of unfavourable fuel hedges
2. Yields stabilise as more premium economy seats are launched
3. SilkAir and Scoot's profitability improves with more fuel efficient aircraft.

SIA also indicated that forward bookings were higher as compared with a year ago for both its business and economy class.