Singapore Airlines *Official* (SGX:C6L)

reddevil0728

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Don't spend this $230m to upgrade cabin. Now people who want to fly just want to get onto the designated flights. Upgrade or not they will take.
Then I don't think you understand SIA's clientele and business model.
 

tan1688

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Means valuation of SIA share price at SGD$5.30 today when 10yr convertible bond changes to mother share 10yrs later is diluted to SGD$2.65
 

reddevil0728

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They are on handouts now. Should not spend like they use to do.
It’s spending for what purpose that matters.

you are assuming all spend are equal. Which ain’t the case.

if you are spending on operation cost, then I agree they better look at ways to cut that cost.

but if you think that upgrading of cabin is considered an operation cost spend rather than a capital investment for future revenue, hence you said “people who want to fly just want to get onto the designated flights. Upgrade or not they will take.” Then it shows that you don’t fully understand SIA’s business model and where SIA makes its bulk of money from.
 
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vsvs24

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It’s spending for what purpose that matters.

you are assuming all spend are equal. Which ain’t the case.

if you are spending ok operation cost, then I agree they better look at ways to cut that cost.

but if you think that upgrading of cabin is considered an operation cost spend rather than a capital investment for future revenue, hence you said “people who want to fly just want to get onto the designated flights. Upgrade or not they will take.” Then it shows that you don’t fully understand SIA’s business model and where SIA makes its bulk of money from.
Got your point. Just that don't like the VP saying SIA don't consider investment timeline when spending 💰on cabin. Means they don't even do ROI before they spend. $230 million is a lot of money.
 

reddevil0728

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Got your point. Just that don't like the VP saying SIA don't consider investment timeline when spending 💰on cabin. Means they don't even do ROI before they spend. $230 million is a lot of money.
Can quote what did the VP say and when/where it was said? Just want to listen to the full context
 

vsvs24

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Can quote what did the VP say and when/where it was said? Just want to listen to the full context

aWfTckA.png
 

reddevil0728

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it's not a quote. will be a little cautious on reading into it. depends on how the reporter wants to frame it.

but let's assume it is true. then yes. optically doesn't seem to be very logical.
 

vsvs24

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it's not a quote. will be a little cautious on reading into it. depends on how the reporter wants to frame it.

but let's assume it is true. then yes. optically doesn't seem to be very logical.
The paragraph after that is worse. He say they can make the investment because of support from stakeholders who had contributed to the ability to make such investments.

Hey. Shareholders and Temasek subscribe to SIA rights to keep it afloat, not for them to spend $230m on cabin upgrade.
 

reddevil0728

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The paragraph after that is worse. He say they can make the investment because of support from stakeholders who had contributed to the ability to make such investments.

Hey. Shareholders and Temasek subscribe to SIA rights to keep it afloat, not for them to spend $230m on cabin upgrade.
again. it's not a direct quote. so i will be wary if that's the tone he's communicating.

but if that's the case then is tone deaf.
 

Shion

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CGS-CIMB upgrades SIA to 'add', positive on FY2022 recovery​


https://www.businesstimes.com.sg/co...grades-sia-to-add-positive-on-fy2022-recovery
CGS-CIMB has upgraded its call on Singapore Airlines (SIA) to "add" from "hold" with a higher target price of S$5.86, as it expects the flag carrier to show a strong recovery in Q3 FY2022 despite uncertainties surrounding the Omicron variant.

In a research note on Wednesday (Dec 1), analyst Raymond Yap said the revised target price of S$5.86 from S$5.81 previously is based on an unchanged target price-to-book value ratio (P/BV) multiple of 1.06 times, applied to the end-FY2023 adjusted book value per share of S$5.53.

The P/BV multiple of 1.06 times is 1 standard deviation above the mean since 2011 of 0.93 times.

"We used a P/BV that is above the mean to reflect our optimism over the meaningful reopening of international travel markets by mid-2022," he said.

Even though some countries, including Singapore, have imposed fresh border control measures, Yap believes that "there is hope" as a South African doctor told Reuters that the Omicron symptoms are not severe.

"If so, nations may resume progressive reopening sooner rather than later," said Yap.

Thus, he expects the rapid expansion of quarantine-free travel via the Vaccinated Travel Lane (VTL) schemes to boost SIA's recovery.

According to the Civil Aviation Authority of Singapore, the countries with which the Republic has launched VTLs have accounted for some 60 per cent of total daily arrivals at Changi Airport in pre-pandemic times. Though a quota of 15,000 passengers daily has been imposed on VTL travel, Yap expects this figure to be increased with time.

SIA has also said that demand for VTL flights has been very strong, and it has forecasted its available seat kilometre (ASK) passenger capacity to rise to 43 per cent of pre-Covid-19 level by Dec 31 2021F, from 33 per cent in August.

Therefore, Yap anticipates that SIA will eventually deploy 74 per cent of the airline's pre-Covid-19 ASK capacity come FY2023.

Additionally, he noted that the airfreight markets remain very strong, and SIA can look forward to a very robust year-end peak season in Q4 CY2021, as well as high airfreight rates.

On the flipside, Yap identified potential downside risks, such as longer-than-expected shutdowns in global international travel should countries keep their travel bans and restrictions on inbound travellers to quell imported Covid-19 cases.

As Singapore reopens its border to more countries, the analyst expects SIA to face competition as many airlines may be eager to reinstate passenger seat capacity quickly. As such, there could be intense competition for the incremental passenger, and passenger yields may soften, he said.

The resumption of transfer traffic through Changi Airport - a significant portion of SIA's pre-pandemic business - could also be slower in pace compared to point-to-point traffic, as transfer traffic depends on regulatory permissions across several national jurisdictions.

Also, additional passenger aircraft deployments may also cause cargo yields to fall from their currently-elevated levels as belly-hold cargo capacity is reintroduced, said Yap.

Shares of SIA were trading S$0.01 or 0.2 per cent higher at S$4.83 as at the midday break on Dec 2.
 

vsvs24

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CGS-CIMB upgrades SIA to 'add', positive on FY2022 recovery​


https://www.businesstimes.com.sg/co...grades-sia-to-add-positive-on-fy2022-recovery
CGS-CIMB has upgraded its call on Singapore Airlines (SIA) to "add" from "hold" with a higher target price of S$5.86, as it expects the flag carrier to show a strong recovery in Q3 FY2022 despite uncertainties surrounding the Omicron variant.

In a research note on Wednesday (Dec 1), analyst Raymond Yap said the revised target price of S$5.86 from S$5.81 previously is based on an unchanged target price-to-book value ratio (P/BV) multiple of 1.06 times, applied to the end-FY2023 adjusted book value per share of S$5.53.

The P/BV multiple of 1.06 times is 1 standard deviation above the mean since 2011 of 0.93 times.

"We used a P/BV that is above the mean to reflect our optimism over the meaningful reopening of international travel markets by mid-2022," he said.

Even though some countries, including Singapore, have imposed fresh border control measures, Yap believes that "there is hope" as a South African doctor told Reuters that the Omicron symptoms are not severe.

"If so, nations may resume progressive reopening sooner rather than later," said Yap.

Thus, he expects the rapid expansion of quarantine-free travel via the Vaccinated Travel Lane (VTL) schemes to boost SIA's recovery.

According to the Civil Aviation Authority of Singapore, the countries with which the Republic has launched VTLs have accounted for some 60 per cent of total daily arrivals at Changi Airport in pre-pandemic times. Though a quota of 15,000 passengers daily has been imposed on VTL travel, Yap expects this figure to be increased with time.

SIA has also said that demand for VTL flights has been very strong, and it has forecasted its available seat kilometre (ASK) passenger capacity to rise to 43 per cent of pre-Covid-19 level by Dec 31 2021F, from 33 per cent in August.

Therefore, Yap anticipates that SIA will eventually deploy 74 per cent of the airline's pre-Covid-19 ASK capacity come FY2023.

Additionally, he noted that the airfreight markets remain very strong, and SIA can look forward to a very robust year-end peak season in Q4 CY2021, as well as high airfreight rates.

On the flipside, Yap identified potential downside risks, such as longer-than-expected shutdowns in global international travel should countries keep their travel bans and restrictions on inbound travellers to quell imported Covid-19 cases.

As Singapore reopens its border to more countries, the analyst expects SIA to face competition as many airlines may be eager to reinstate passenger seat capacity quickly. As such, there could be intense competition for the incremental passenger, and passenger yields may soften, he said.

The resumption of transfer traffic through Changi Airport - a significant portion of SIA's pre-pandemic business - could also be slower in pace compared to point-to-point traffic, as transfer traffic depends on regulatory permissions across several national jurisdictions.

Also, additional passenger aircraft deployments may also cause cargo yields to fall from their currently-elevated levels as belly-hold cargo capacity is reintroduced, said Yap.

Shares of SIA were trading S$0.01 or 0.2 per cent higher at S$4.83 as at the midday break on Dec 2.
Just based on what 1 South African doctor say 😂
 

vsvs24

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even before the pandemic ,, profit is not much ... a hopeless company ...
Before pandemic, they were still making profits when other airlines were making losses.

But I don't like their handling of finances during pandemic. Feel that they did not go all out to save cost just because government say won't let them collapse.
 
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