SIA: Could see some positive interests after Airline stock prices in US rose following plunge in crude. Seperately, UBS maintains Buy with $17.90 TP. Note that FY11 result on 12 May and do not expect too much excitement driving share price, though SIA remains as preferred airline against the high oil price and slower traffic growth….
Estimate FY11 Net Profit of $1.2b, +459% YoY and 5% below consensus. Forecast FY11 rev to increase 15% YoY, with passenger traffic +2% and yield +15%. Final Div forecast of $0.5 is above consensus of $0.6, as house do not expect a massive payout like in FY07. Valuations are compelling, with Grp trading at 1.3x FY12E P/B, a discount to peer and slightly below its own mid-cycle valuations.
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