SIA

SIA’s Oct operating results out and Cathay Pac has posted a positive profit warning for the peak period in 4Q. Cathay improved business on long haul routes than regional routes and profit greater than HK$12.5b, vs HK$4.7b last yr. Generally a positive read through for SIA given similarities in ops and geo coverage. For Oct operating stats, SIA pax load factor dipped 1.5%yoy to 79.6% explained by capacity increase of 1.4% vs 0.6% decline in pax carriage…

No. of passengers carried -1.8% to 1.4m. All regions except East Asia saw declines in passenger load factor yoy. For Oct, co upped capacity via increasing frequencies to destinations including Houston (via Moscow), Manchester (via Munich), Hong Kong, Seoul and Delhi. QoQ performance increased for all measures due to seasonality. CS maintains Outperform TP 185, At fwd P/B 1.3x, EV/EBITDA of 4.7x attractive below hist avg of 1.3x of 7.2x for high projected RoAEs.