Mkoh
07-30

Singapore Airlines (SIA) reported a 59% drop in Q1 FY2025/26 net profit to S$186 million, largely due to losses from its 25.1% stake in Air India and increased competition impacting passenger yields. Operating profit fell 13.8% to S$405 million, despite a 1.5% revenue increase to S$4.79 billion. Shares dropped over 8% following the July 28, 2025, earnings release, with a noted price of S$7.11 after the decline.

Regarding an entry price point for SIA stock, CGS Internationals analyst report suggests a target price of S$6.80, indicating a 10.5% downside from the July 28, 2025, price of S$7.60, reflecting concerns over Air India’s losses and high valuations. Maybank also downgraded SIA to a "SELL" rating, citing weaker cargo demand and higher operating costs, which could further pressure earnings.

Given the current challenges, including Air India’s ongoing recovery from a June 2025 crash and competitive pressures, a cautious approach is warranted. An entry point around S$6.80–S$6.90 aligns with the analyst target and recent share price lows (e.g., S$6.88 on June 13, 2025, post-crash). This range could offer a margin of safety, but monitor Air India’s recovery and SIA’s cost control measures, as these are critical to future performance.

SIA Tumbles for 3 Days! At What Price to Buy the Dip?
Singapore Airlines’s profit slumped in the first quarter as losses from Air India Ltd. and lower interest income weighed on the company’s financial results. Net income tumbled 59% to S$186 million ($145 million) in the three months ended June 30, the carrier said in a statement Monday. Revenue rose 1.5% to S$4.79 billion, bolstered by record travel volumes and strong cargo demand. -------- With SIA free falling, what's your buy-the-dip price? How do you view the profit decline?
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Comments

  • Eric Zhuo
    07-31
    Eric Zhuo
    Can give so high bonus must be earning mah lol
  • Mybedear
    07-31
    Mybedear
    补仓
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