These three aviation stocks - Singapore Airlines (SIA), Singapore Airl Terminal Services (SATS) and SIA Engineering (SIAEC) will certainly benefit with Singapore and China establishing a thirty day mutual visa exemption arrangement for ordinary passport holders in early 2024. Air traffic to Singapore is set to rise further in 2024 then. SIA stands to benefit greatly in this mutual agreement as out of a population of China's 1.4billion people about 140 million have a passport and they are likely to come to Singapore due to the similarity between the two cointries' cultures. This is indeed very positive for the three aviation stocks mentioned. China and Singapore look forward to attain pde-pandemic travel levels.
SIA expect its passenger capacity to hit 100% within finamcial year 2025 and the company hooes to see its earnings stabilise and rise above pre-pandemic levels come 2026. SATS stands to gain alot due tobthe flight bolume recovery and growth in global air cargo volume and is expected to realise its full earnings potential in 2026. SIAEC net profit is expected to reach $174 million in 2025 with the revovery in regional flight activities.
Investors chasing Sinhapore stocks should keep these three stocks in their portfolio till end 2026 to ride on the expected profitability of these three stocks. Yes, dip buying on SIA, SATS and SIAEC will certainly pay off in the next two to three years. Remeber, patience pays!
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Do they belong to the same mother company?
Good news but SG stocks are just hard…