Excerpts from analysts reports
OCBC Investment Research keeps 'hold' rating on SMRT
Analyst: Wong Teck Ching Andy
SMRT reported a decent set of 1QFY15 results which beat ours and the street’s expectations. PATMI jumped 36.8% YoY to S$22.4m on the back of a 4.3% increase in revenue to S$297.1m. This was driven by an improvement in operational performance for both its Fare and Non-fare businesses.
Meanwhile, management is hopeful that it can reach a win-win situation with the LTA on the new rail financing model, although there is still uncertainty over the timeframe and details.
We raise our DDM-derived fair value estimate on SMRT from S$1.40 to S$1.65 as we bump up our PATMI projections and terminal growth rate assumption. However, we maintain our HOLD rating on SMRT given the limited upside potential.
OCBC Investment Research keeps 'hold' rating on Singapore Airlines
Analyst: Yap Kim Leng
SIA's 1Q FY15 net profit tumbled 71.4% to S$34.8 m.
NextInsight file photo.Weak 1QFY15 results as expected
Singapore Airlines’ (SIA) 1QFY15 revenue was within expectations (-0.6%) as it decreased 4.1% YoY to S$3.68b. Reported 1QFY15 PATMI was 71.4% lower at S$34.8 m.
But when adjusted for the change in depreciation policy, 1QFY15 PATMI would have been S$25.8m, or 2.7% higher than our forecast.
Poor results from associates and JV (-S$27m YoY) dragged PATMI, of which: 1) S$14m loss came from Tiger Airways, and 2) weaker performance from engine repair and overhaul centres caused profits from JV to decline by S$11m. We think aggressive promotions and capacity addition will continue to pressure yields.
But given the moderation in QoQ yield declines, we use a higher 0.85x P/B-net cash (previous: 0.77x) and derive S$9.97 FV estimate (previous: S$9.50). Maintain HOLD.
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Analyst: Gerald Wong, CFA ■ 2Q14 results preview. We expect 2Q14 net profit of Rmb700 mn, above consensus of Rmb625 mn, as shipbuilding margins are likely to remain resilient. |
