External broker reports(aggregated public sources), RHB Invest

RHB Invest

External broker reports(aggregated public sources)

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e.</li><li>This is in line with historical P/B of 1.1x.</li><li>After an exceptional year in FY23 driven by early-mover advantage, we expect Singapore Airlines (SIA)’s net profit in FY24e and FY25e to decline by 19% and 43%, respectively, with tapering passenger yields and passenger load factors.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e.This is in line with historical P/B of 1.1x.After an exceptional year in FY23 driven by early-mover advantage, we expect Singapore Airlines (SIA)’s net profit in FY24e and FY25e to decline by 19% and 43%, respectively, with tapering passenger yields and passenger load factors.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Singapore Airlines (SIA) - Rising Pressure On Load Factors & Yields

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>Singapore’s visitor arrivals surpassed 1 million in April 2023, the highest in a month since the pandemic, bringing the total number of visitor arrivals to over 4 million in the year-to-date (YTD).</li><li>The 10 stocks booked net institutional inflows of S$186.7 million, while the broader Singapore stock market recorded over S$2.3 billion of net institutional outflows.</li><li>In the YTD ending 18 May 2023, Genting booked the highest net institutional inflows across the Singapore stock market.</li></ul>

Singapore’s visitor arrivals surpassed 1 million in April 2023, the highest in a month since the pandemic, bringing the total number of visitor arrivals to over 4 million in the year-to-date (YTD).The 10 stocks booked net institutional inflows of S$186.7 million, while the broader Singapore stock market recorded over S$2.3 billion of net institutional outflows.In the YTD ending 18 May 2023, Genting booked the highest net institutional inflows across the Singapore stock market.

Tourism and Hospitality Stocks Benefit from Recovery Momentum

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Upgrade SIA to HOLD with a higher target price of S$5.75.</li><li>SIA’s FY23 (Apr 2022 to Mar 2023) core net profit was in line with our expectations at 99% of our forecast.</li><li>The final dividend of 28 cents was a positive surprise, leading to a 6.3% full-year yield for FY23. (See SIA's dividend date)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Upgrade SIA to HOLD with a higher target price of S$5.75.SIA’s FY23 (Apr 2022 to Mar 2023) core net profit was in line with our expectations at 99% of our forecast.The final dividend of 28 cents was a positive surprise, leading to a 6.3% full-year yield for FY23. (See SIA's dividend date)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Singapore Airlines (SIA) - FY23 Results In Line; Strong Final Dividend A Key Surprise

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>China's outbound tourism recovery started much later than others in the region</li>
<li>In particular, Taiwan &amp; Korea began ramping outbound travel earlier (in Q222)</li>
<li>As destinations, Thailand &amp; Vietnam recovered early, but now lag HK's growth</li>
</ul>


China's outbound tourism recovery started much later than others in the region
In particular, Taiwan &amp; Korea began ramping outbound travel earlier (in Q222)
As destinations, Thailand &amp; Vietnam recovered early, but now lag HK's growth


China's Tourism Recovery Versus Other Major Tourist Sources in Asia: Delayed, Not Slower

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Thematic (Sector/Industry)

<ul>
<li>Jet fuel price has declined in the past two months and is 20% lower than the September peak. Positive for airlines but we have yet to see any earnings upgrade   </li>
<li>All the Chines state carriers (Air China, China Eastern and China Southern) and Taiwan's EVA Airways are unhedged, benefiting the most from this lower fuel price trend </li>
<li>Worst off due to fuel hedge cover at higher than current market prices are Qantas Airways (75% hedged), Air New Zealand (54% hedged) and Japan Airlines (40% hedged)  </li>
</ul>


Jet fuel price has declined in the past two months and is 20% lower than the September peak. Positive for airlines but we have yet to see any earnings upgrade   
All the Chines state carriers (Air China, China Eastern and China Southern) and Taiwan's EVA Airways are unhedged, benefiting the most from this lower fuel price trend 
Worst off due to fuel hedge cover at higher than current market prices are Qantas Airways (75% hedged), Air New Zealand (54% hedged) and Japan Airlines (40% hedged)  


Lower Fuel Price, Which Asia Pacific Airline Benefits and Suffers the Most?

Singapore

Singapore Airlines Limited provides air transportation, engineering, pilot training, air charter, and tour wholesaling services. The Company's airline operation covers Asia, Europe, the Americas, South West Pacific, and Africa.

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Singapore Airlines (SIA SP)

Singapore Airlines (SIA) - Rising Pressure On Load Factors & Yields

We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e. This is in line with historical P/B...

RHB Invest

Tourism and Hospitality Stocks Benefit from Recovery Momentum

Singapore’s visitor arrivals surpassed 1 million in April 2023, the highest in a month since the pandemic, bringing the total number of visitor...

Singapore Exchange Ltd (SGX)

Singapore Airlines (SIA) - FY23 Results In Line; Strong Final Dividend A Key Surprise

Upgrade SIA to HOLD with a higher target price of S$5.75. SIA’s FY23 (Apr 2022 to Mar 2023) core net profit was in line with our expectations at...

UOB Kay Hian

China's Tourism Recovery Versus Other Major Tourist Sources in Asia: Delayed, Not Slower

In this insight we compare China's progress toward restoring outbound tourism activity to the progress shown by other major tourist sources in the...

Tracking Traffic

Lower Fuel Price, Which Asia Pacific Airline Benefits and Suffers the Most?

Jet fuel prices have been declining and this is good for airlines. The impact varies according to average flight length and fuel hedge exposure....

Mohshin Aziz

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Singapore Airlines (SIA) - Rising Pressure On Load Factors & Yields

We resume coverage on SIA with a REDUCE recommendation and target price of S$6.80, based on 1.1x P/B for FY24e. This is in line with historical P/B...

RHB Invest

Tourism and Hospitality Stocks Benefit from Recovery Momentum

Singapore’s visitor arrivals surpassed 1 million in April 2023, the highest in a month since the pandemic, bringing the total number of visitor...

Singapore Exchange Ltd (SGX)

Singapore Airlines (SIA) - FY23 Results In Line; Strong Final Dividend A Key Surprise

Upgrade SIA to HOLD with a higher target price of S$5.75. SIA’s FY23 (Apr 2022 to Mar 2023) core net profit was in line with our expectations at...

UOB Kay Hian

China's Tourism Recovery Versus Other Major Tourist Sources in Asia: Delayed, Not Slower

In this insight we compare China's progress toward restoring outbound tourism activity to the progress shown by other major tourist sources in the...

Tracking Traffic

Lower Fuel Price, Which Asia Pacific Airline Benefits and Suffers the Most?

​Jet fuel prices have been declining and this is good for airlines. The impact varies according to average flight length and fuel hedge exposure....

Mohshin Aziz

Jet fuel prices have been declining and this is good for airlines. The impact varies according to average flight length and fuel hedge exposure....