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The sockholder register will be closed 5pm 7 Sep 07 for the purpose of determining entitlements to the cash distribution and the number of shares to be cancelled; the shareholders to whom the top-up offer will be made and administrative procedures. Entitled shareholders will receive a cash distribution of S$18.46 for each share cancelled.
The company proposes to cancel all old share certificates. Upon cancellation the company will issue new share certificates within 10 market days from the books closure date. For payment of the cash distribution entitled shareholders will have cheques despatched (ordinary post) by 10 October 2007.
Shares traded from 9am on 5 Sep 07 (Wednesday) will not be entitled to the cash distribution pursuant to the capital reduction.
With effect from 9am on 5 Sep 07 (Wednesday), Shareholders can only sell up to a maximum number of shares attributable to them consequent upon the Capital Reduction taking effect, based on the number of Shares held by them as at the close of trading on 4 September 2007 (Tuesday).
A Shareholder X who holds 1,000 shares as at the close of trading on 4 Sep 07 (Tuesday) will only be allowed to sell up to a maximum of 940 shares at or after 9am on 5 Sep 07 (Wednesday). Shareholder X will be entitled to receive a cash distribution of S$18.46 for each share cancelled, but the purchaser of shares from Shareholder X at or after 9am on 5 Sep 07 (Wednesday) will not receive any cash distribution nor will such shares purchased be subject to the capital reduction.
If Shareholder X sells 1,000 Shares at or after 9am on 5 Sep 07 (Wednesday), he will be short of 60 shares in his securities account on the settlement date and he will be subject to the usual buying-in procedures applied by the SGX-ST.
The SGX-ST has approved the listing and quotation for the Shares in board lots of 10 Shares for a period of 30 days starting from 9am on 5 Sep 07 (Wednesday). After the expiry of such 30-day period, the shares will trade in board lots of 1,000 shares and 200 shares only.
SIA has made special arrangements with DBS Vickers, UOB Kay Hian and OCBC Securities to reduce their minimum brokerage fees for trades on odd-lots from the usual S$40 - S$50 per contract to S$20 (excluding GST and SGX clearing and access fees) per contract for the 30-day period during which the temporary trading counter is in effect.
You will need to have a broking account with DBS Vickers, UOB Kay Hian or OCBC Securities to make use of this sale arrangement. If you do not have a broking account with them, you may apply to open one by visiting in person the office of the relevant broker (see detailed announcement, attached, for addresses).
IMPORTANT EVENTS AND DATES:
Last day to deposit old share certificates with CDP 31 August 2007
Last date and time of "cum" trading of the Shares 4 September 2007 at 5.00 p.m.
Commencement of "ex" trading of the Shares 5 September 2007 at 9.00 a.m.
1st day for shares to trade in board lots of 10 Shares 5 September 2007
Books Closure Date 7 September 2007 at 5.00 p.m.
Top-Up Offer despatch 15 September 2007
Last date/time to accept Top-Up Offer 29 September 2007 at 12.00 p.m.
Payment of Cash Distribution 10 October 2007
Credit of new Shares into securities accounts 10 October 2007
Despatch of new shares 10 October 2007
Commencement trading of new shares 11 October 2007 at 9.00 a.m.
Further details on the Top-Up Offer will be set out in the Top-Up Offer Document, which is expected to be despatched to shareholders on or around 15 Sep 07.
China Eastern Airlines cleared to sell stake to SIA
Beijing (ANTARA News/Asia Pulse) - China Eastern Airlines Co Ltd (SEHK:0670, SSX:600115) expects trading in its shares in Hong Kong and Shanghai to resume before the end of this month as the proposed sale of a minority stake to Singapore Airlines (SGX:S55) has won the approval of four government agencies. China Eastern is still awaiting the final approval of the State Council.
According to the latest reports, Singapore Airlines and Temasek Holdings Pte, the Singapore government's investment company, will buy a combined stake of about 25 per cent in China Eastern, China's third-largest carrier, at around HK$3.73 per H-share.
The company's A-shares, listed in Shanghai, and H-shares, listed in Hong Kong, have been suspended from trading for nearly three months since May 22.
Singapore Airlines said on Thursday it will take delivery of its first Airbus A380 superjumbo, the world's biggest passenger plane, on Oct. 15, two years late, and expects to take it on its first regular flight on Oct. 25.
The world's biggest airline by stock market value said in a statement that it would pick up the aircraft from European planemaker EADS
Singapore Airlines, the first carrier to fly the new plane commercially, will equip the A380 with 471 seats in three classes.
"Demand in SIA's source markets remains robust. Our survey of capacity on international routes in Asia indicates demand will exceed supply until at least '09," HSBC analysts Mark Webb and Eric Lin said in a note to investors.
"SIA is the lowest cost premium airline in our coverage and will be a winner as ASEAN liberalises, we believe. Its flexible pay structure, high margins, and lack of debt mean SIA is the least cyclical airline in Asia."
Morgan Stanley has raised its 12-month share price target for Singapore Airlines
HSBC has raised its share price target for Singapore Air to S$25 from S$22.39 and increased its earnings forecast, citing a strong outlook for the world's biggest airline by stock market value.
Singapore Airlines Ltd
, the world's second-largest carrier by market value, fell as investors who bought the stock yesterday won't be eligible for a dividend payout. The stock fell $1.1, or 5.8 per cent, to $17.80 at the close of trading. The company is paying a special dividend of 50 cents a share, in addition to a payout of 35 cents a share. Singapore Airlines (SIA) flew 5.2 per cent more passengers from a year earlier in the quarter ended June as economic growth and rising incomes boost demand for air travel. First-quarter passenger yield, or average revenue per seat, climbed to 11.5 cents per kilometre from 10.6 cents a year earlier, helping boost operating profit by 69 per cent. 'The strong passenger yield for SIA underscores our conviction that SIA and the Asian airline industry have very strong pricing power for the passenger operation in the next six months,' Chin Lim, an analyst at Morgan Stanley, wrote in a report dated on Wednesday. 'The strong yield outlook for SIA could drive the stock to our bull case valuation of S$23.90.' The carrier on Wednesday said net income for the quarter ended June fell 26 per cent to $424.1 million, as a one-time gain last year masked contributions from higher passenger traffic. Operating profit, or sales minus the cost of goods sold and administrative expenses, jumped 69 per cent to $463.3 million.not forgetting the general mood in the market... In fact SIA was holding quite well in the morning by going down by 60c (the xd amount)... it's unfortunate that nothing will present the slight when it's irrational.
Abt high fuel price... they pass it on to passenger anyway, don't they.. been increasing fuel surcharge
isqnet,
I beg to differ.
I think SIA's 1Q 08 result is very credible.
At the operating level, despite a 1.5% reduction in capacity, it was able to increase passenger km by 2.9% and net profit by 20.6%. This shows that management is working to improve productivity and efficiency.
The dark cloud ahead is of course the threat of high fuel price.
CIMB - OUTPERFORM
TP - S$25.60
Maintain OUTPERFORM and target price of S$25.60.
Adjustments to forecasts to incorporate new fuel price assumptions. Our FY08 EPS forecast has been increased by 3.1%, FY09 estimate lowered by 0.9% and FY10 number raised by 11%. We have increased our WTI fuel price assumptions to US$65/barrel for 2007, US$65 for 2008 and US$60 for 2009, but we have also raised our fuel surcharge forecasts. We expect SIA?s core EPS to grow 54% yoy in FY08, 15% in FY09 and 19% in FY10. The current financial year?s growth is driven primarily by tight capacity utilisation driving yields higher, since ASK is expected to grow by only 1% yoy.
In FY09-10, yield growth should moderate but capacity should rise on the back of the A380 and B777-300ER deliveries. Fuel price risk is minimal, as SIA has the market power to command higher rates in a strong demand environment.
Our cum-capital reduction target price is the sum of a capital distribution of S$1.20 and an unchanged ex-capital repayment target of S$24.40. The latter is based on an unchanged forward P/E of 15x, at the higher end of SIA?s 10-18x trading range.KIM ENG - BUY
TP - S$21.30
We are likely to maintain our forecast of S$1,665.7m for the full year. Excluding one-offs in FY07, this would represent a healthy 14% rise despite capacity constraints. Pending an analysts briefing this afternoon, we are still maintaining our Buy recommendation and target price of S$21.30.
Merrill Lynch raised its price target for Singapore Air shares to S$22.80 from S$21.40 on the back of higher profit expectations and said it recommended investors "buy" the stock.
OUTLOOK
Demand for air travel is expected to remain buoyant in the second quarter, with high forward bookings across all route regions, especially in the premium cabins.
Passenger capacity will resume growth later in the year. With the delivery of four additional Boeing B777-300ERs and three Airbus A380-800s by March 2008, passenger capacity is expected to grow at about 1% for the full financial year.
Singapore Airlines is in the final stages of preparations to receive the first Airbus A380 in October, and will put it into commercial service soon thereafter.
The strong support for the Special Flight?s charity auction is most heartening, and augurs well for the enthusiasm customers have for this aircraft.
On the cost side, fuel remains a significant challenge, with price volatility continuing to be a key variable to financial performance.
OPERATING PERFORMANCE: RECORD PASSENGER TRAFFIC
During the quarter, Singapore Airlines carried 4.6 million passengers (+5.1%) and revenue passenger kilometres grew 2.9% despite a capacity reduction of 1.5% in available seat kilometres. As a result, passenger load factor improved 3.3 percentage points to 78.9%.
Passenger breakeven load factor was 1.2 percentage points lower, at 69.6%, because yield grew at a higher rate (+8.5%) than unit cost (+6.7%).
SIA Cargo?s freight traffic (in load tonne kilometres) grew 0.1% while capacity (in capacity tonne kilometres) fell by 0.2%. As a result, cargo load factor rose 0.2 percentage point to 62.1%. However, cargo breakeven load factor rose 1.1 percentage points to 65.3%, as yield declined at a faster rate (-6.5%) than unit cost (-4.9%).
FIRST QUARTER OPERATING PROFIT IMPROVES 69% TO $463 MILLION
PARENT AIRLINE OPERATIONS DRIVE GROUP OPERATING PROFIT
The Group made an operating profit of $463 million for the first quarter of 2007-08; an increase of $189 million (+69.2%) from the previous year, underpinned by strong performance from the Parent Airline Company.
Group revenue rose $201 million (+5.9%) to $3,622 million ? the highest ever for the April ? June quarter.
Group expenditure was $12 million (+0.4%) higher, at $3,159 million.
Although fuel prices eased slightly during the early part of the quarter, fuel cost remained high and accounted for 36.9% of the Group expenditure. Net of hedging, fuel expenditure fell $58 million (-4.7%) to $1,165 million.
The Group earned a net profit attributable to equity holders of $424 million for the first quarter ended 30 June 2007, compared to $575 million in the same quarter last year. The previous year?s results were boosted by an exceptional gain of $223 million from the sale of the SIA Building in Singapore. Excluding that exceptional gain, profit attributable to equity holders this year was $72 million (+20.6%) higher.
The Parent Airline Company posted an operating profit of $384 million (+102.5%), more than double the same period last year. The Airline?s strong operating results contributed 82.8% (+13.6% points) to the Group?s operating profit.
The operating profit/loss of the three major subsidiary companies are as follows:
Singapore Airport Terminal Services (SATS) Group: Profit of $46 million (-4.2%)
Singapore Airlines, the world's biggest airline by market value, on Wednesday said quarterly net profit fell 26 percent in the absence of one-off gains, and that the high price of jet fuel remained its biggest headache.
Singapore Airlines
"Fuel remains a significant challenge, with price volatility continuing to be a key variable to financial performance," the state-controlled firm said in its first-quarter results report.
Net profit for the quarter fell to S$424 million ($279 million) from S$575 million in the previous year when the result was helped by a one-off gain of S$223 million from the sale of property.
First-quarter revenue rose 6 percent to S$3.62 billion, while costs rose marginally to S$3.16 billion from S$3.15 billion. Jet fuel expenses eased 4.7 percent to S$1.17 billion -- net of hedging in the futures market.
After warning investors in May that it faced limited capacity growth because of the delayed delivery of the Airbus
It expects passenger capacity to increase by 1 percent in its 2007/08 fiscal year. Singapore Airlines, which flies 93 aircraft, will be the first to fly the A380 commercially and expects to use the giant aircraft on its busy London-Singapore-Sydney route.
Singapore Airline's shares have risen around 9 percent so far this year, beating Cathay Pacific Airways' <0293.HK> 7 percent rise but lagging an 11 percent increase in shares in Qantas Airways
The price of jet fuel
Singapore Airlines, the city-state's only global brand, is among the world's most profitable airlines thanks to its focus on cost and efficiency. In January, it said it would outsource some of its call centre operations in Australia and North America.
The airline is in talks, which have dragged on for a year, to buy a stake in loss-making China Eastern Airlines <600115.SS> <0670.HK>
Analysts say Singapore Airlines, which focuses on business travellers, faces a static home market with the days of big traffic growth behind it and could benefit greatly from getting a foothold in China's commercial capital Shanghai as demand for air travel rises in Asia's second-largest economy.
Last month, British entrepreneur Richard Branson said he would consider buying back a 49 percent stake in his Virgin Atlantic Airways [VA.UL] owned by Singapore Air -- should the Singapore carrier decide to part with its investment.
Majority-owned by state investment firm Temasek [TEM.UL] and valued at $16 billion, Singapore Airlines is the cheapest stock among leading Asian carriers, trading at nearly 14 times forecast earnings against multiples of 14.8 for Cathay and 15.4 for Qantas.
Singapore Grand Prix will flag off on 28 Sept.
This will help boost the tourism even more.
Bright future ahead.
Earning announcement on 1 Aug.
Figure should be good as tourism improved.