Singapore Stock Market News

Singapore Airlines - Non-operating tailwinds

StockFanatic
Publish date: Sat, 27 Jul 2013, 01:30 PM
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Although 1QFY14 core net profit was 27% above our forecast, SIA's bottomline was boosted by the revenue from a settlement pertaining to changes in aircraft delivery slots. Excluding this unexpected gain, net income would have been 20% below our forecast.

Singapore Airlines' (SIA) continued concern over the yield weakness in both the passenger and cargo markets reinforces our view that it will still struggle against the Middle Eastern and low-cost carriers. We cut our FY14-16 core EPS estimates by 2-10%, and lower our EV/EBITDAR target price to S$10.50, which is based on a trough multiple of 4.2x CY14 EV/EBITDAR. We reiterate a Neutral rating on SIA.
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