SIA

SIA: Maybank-KE has results preview. The house expect SIA’s Cargo unit to drag group further into the red. Expect SIA to report core operating loss of $41m for 2QFY3/14F (2QFY3/13: +SGD70m; 1QFY3/14:+SGD82m) when it releases its results on 12 Nov 2013. Across the core business units, expect breakeven load factors to head north sequentially on higher jet fuel prices and downward pressure on yields. Overall, group earnings would have to be supported by its associates and the joint ventures of SIAEC. Overall, the house reiterates its HOLD call on SIA with target price trimmed to $10.20. Prefer exposure to SIAEC (BUY, TP: $6.19), its profitable engineering arm.