bernardtayet
2022-04-13

$SINGAPORE AIRLINES LTD(C6L.SI)$ and $SIA ENGINEERING CO LTD(S59.SI)$ Which one to buy? With border reopening, the aviation sector is poised to recovery, though may not be smooth. 

If I have a bigger budget, I will buy both stocks since they are both beneficiary of borders openings in Singapore and other countries. 

However if I have a budget of say $6000, I would invest in SỊA engineering since it has a stronger balance sheet, and a diversified essential aircraft maintenance, repair and overhaul business in Singapore and in the region.

Many carriers would need its services on aircraft maintenance to certified fit to fly safely. Hence it is first to benefit compared to SIA which is highly dependent on pax and cargo volume which is not as certain immediately.

So as a new investor who owns neither share, it is wiser to go for $SIA ENGINEERING CO LTD(S59.SI)$, especially with a limited budget to start with.

For those who already own SIA share and had some spare money, you can also consider SIA engineering to benefit for its potential dividends payout once its business turnaround. 

Just sharing my views only on aviation stocks. Please do your due diligence. 

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Comments

  • Samlunch
    2022-04-13
    Samlunch
    I would stay away from airlines due to low margin and high capex. The service that services the airlines and eats off the capex is more attractive. Investing in airport is good too.Too bad CAG private
    • bernardtayet
      Absolutely agreed with your insightful vision. Thanks
  • hj489
    2022-04-13
    hj489
    Buy SIA ENGINEERING as more airlines are flying need maintenance.
    • bernardtayet
      Insightful comments. That is precisely what I meant. Thank you.
  • Bonta
    2022-04-13
    Bonta
    Do agree that SIA engineering is the more stable choice. Have exposure to tourism, yet without the risk of higher oil prices and lock downs.
    • bernardtayet
      Thank you for the insights. I can't agree more. Absolutely true.
    • bernardtayetReplyBonta
      Yes, maintenance must come first b4 flying. SO SIA eng is a first choice. Yay.
    • BontaReplybernardtayet
      Haha. U are the one who highlighted it. I only added to urs. [Serious]
  • CndzRed
    2022-04-13
    CndzRed
    that’s worth considering, thanks for your insight
  • JLNG
    2022-04-13
    JLNG
    Thank you for sharing
  • BarbaraWillard
    2022-04-13
    BarbaraWillard
    I'd like to buy SINGAPORE AIRLINES today ,thanks for sharing.
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