by winston » Wed Nov 11, 2020 9:22 am
not vested
WEAK 1HFY21 BUT LIGHT AT THE END OF THE TUNNEL
S$1.3b of aircraft impairment loss
Monthly cash burn reduced to S$300m
No interim dividend was declared
Singapore Airlines’ (SIA) 1HFY21 results were significant below Bloomberg’s consensus and our forecasts.
1HFY21 revenue fell sharply to S$1.6b (-80.4% YoY) due to weak passenger flown revenue, partially offset by higher cargo and mail revenue.
PATMI reversed from a profit of S$205.6m in 1HFY20 to a record loss of S$3.5b in 1HFY21 on the back of weak operating performances, fuel hedging ineffectiveness and impairment loss.
All passenger airlines reported operating losses in 1HFY21 on subdued travel demand.
The announcement on vaccine by Pfizer and BioNtech is a positive news for travel related stocks. With the lack of domestic market, however, we expect SIA to recover at a slower pace.
We expect a recovery to pre-Covid-19 levels in FY24, assuming a vaccine will be widely available by mid-2021.
Our fair value estimate increases slightly from S$3.50 to S$3.70, based on P/B multiple of 0.72x.
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"