SIA

SIA: FY13 operating stats - Passenger: - 6.8% increase y/y traffic growth; - 4.3% increase y/y capacity growth; - 1.9ppts increase in load factor to 79.3%; Cargo: - 6.0% decline y/y traffic growth; - 5.5% decline y/y capacity growth; - 1.8ppts increase in load factor to 67.2%; SilkAir (Pax): - 16.9% increase y/y traffic growth; - 20.2% increase y/y capacity growth; - 2.1ppts decline in load factor to 69.3%; Pax yields fell 3% q/q in 4QFY12 and yields could show a similar trend in the current quarter. Weakness in the yen could hurt SIA’s yield as could intense competition from other full-service carriers. Silk Air’s 4QFY load factor fell to the lowest since 1Q11, indicating that yields would have come under pressure and consequently, the operating profits are likely to see a substantial y/y and q/q decline. Increasing LCC competition in the region could likely be the cause of the yield pressure. UOB Kay Hian maintains SELL, TP of $10.70; CIMB maintains NEUTRAL, TP of $11.00;