The Russia-Ukraine war and the Covid-19 lockdowns in China will likely raise cargo yields in Mar 2022, after the seasonally-weak Lunar New Year period. High oil prices from late-Feb onwards will not materially affect SIA’s 4QFY22F performance, as jet fuel is usually priced with a one-month lag. Reiterate Add with an unchanged TP of S$5.88, still based on FY23F P/BV of 1.06x (+1 s.d. from the mean since 2011) on our adjusted BVPS.
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