NEUTRAL retained on regional LCCs. Scoot, SIA's wholly-owned airline
specialising in low-cost, long haul flights, has been in service since 4
Jun 2012 with its maiden flight to Sydney. We are unexcited by this
development as it is an unproven model; even perceived market leader
AirAsia X has not turned a cash profit since its inception back in 2007.
We maintain our HOLD call on SIA with an unchanged target price of
SGD11.15, pegged to historical mean P/B of 1.0x. This development will
also not impact the LCCs in our coverage: AirAsia, Asia Aviation and
Cebu Pacific.
Click here for full report
Source: Maybank Research - 5 July 2012
No comments:
Post a Comment