SIA

SIA: Off 1.1% at $14.88, in line with a broadly weaker market, despite below-consensus 3Q results, with management noting a cloudy outlook. UOB note that grp’s "strong grip on its costs" could support stock near term; house notes passenger unit costs were at 8.6c/ASK, against forecast of 9c/ASK, suggesting grp had hedged substantial portion of fuel requirements. However, note that management warned about airlines' higher capacity injections and higher jet fuel prices…..

House keeps Hold rating and $15.90 TP, saying net profit was 71% above its own expectations of $170m on lower-than-expected unit costs, $45.1m in recognition of liquidated damages and subsidiary SilkAir's surprisingly strong results. Add that an improvement in load factors will likely be the next share price catalyst. The house suggests a $14.30 entry price.