Kim Eng Research in a Jan 18 research report says: "SIA’s December passenger load factors dipped 3.6 percentage points y-o-y but still remained healthy at 80.7. Cargo continued to outperform expectations, with load factor holding steady at 63.5.

"On the fuel front, jet fuel prices have risen by 8% over the past month to US$111 per barrel. Despite this, SIA will be able to claw back some of this from its raising of fuel surcharges in December. Earnings may also get a boost from a weak US dollar, as a greater proportion of costs (mainly fuel) are denominated in the greenback, versus revenues.

"Our FY Mar11 net profit forecast is intact at $1.49 billion. While higher fuel prices remain the main concern, this is likely to be cushioned by rising loads and yields. Target price of $18.90. MAINTAIN BUY."

DMG & Partners Securities in a Jan 17 research report says: "Sembcorp Marine (SMM) has won a shipbuilding and three upgrading jobs valued at $215 million for various customers. We estimate that total outstanding orderbook climbed to $5.7 billion, with deliveries extending up to end 2013 and is 1.4x annualised FY10 revenue.

"We maintain our net profit forecast for FY2011-2012 given that we have assumed $4.5 billion newbuilding and conversion projects (excluding Petrobras rig program) in FY2011. We value SMM at $5.30 using sum-of-the-parts (SOTP), valuing the offshore & marine business using DCF at 9% WACC and 3% terminal growth.

"Share price is trading at sector-leading valuation of 18x FY11 P/E and 20% above its 10-year average P/E. Downside is capped by 3% dividend yield and strong balance sheet. MAINTAIN NEUTRAL."