SIA share price (SGX: C6L) on bullet train!

Lifetime Membership Hurry! The train is leaving! SIA share price (SGX:C6L) looks set for a supersonic run after the Group posted a record $1.23 billion half-year operating profit. The blow-out result came on the back of a surge in travel demand as Singapore fully opened its borders to vaccinated travellers since April 2022. To put the icing on the cake, the Group declared its first dividend in three years.

For sure, Christmas certainly comes early for SIA investors. The turnaround for the national carrier had taken longer than expected due to the protracted pandemic. Those who had given up on SIA share price (SGX: C6L) could be forgiven as there had been so many twists and turns. Nonetheless, the latest financial result would put to rest any lingering doubts that this is another false dawn for SIA share price (SGX:C6L).

The explosive pent-up demand for air travel led to revenue for 1HFY2022/23 surging almost 200% to hit $8.4 billion while net profit reached $927 million. During the first half, revenue from passenger segment rose nearly 700% year-on-year to nearly $6 billion. Traffic was a staggering 11-fold higher, underscoring the phenomenon of revenge leisure travel.

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On the back of the solid business performance, SIA share price had been in buoyant form for the past two weeks. But in my opinion, SIA share price (C6L) had not peaked. Given that the year-end is the peak travel season, the business performance for the current quarter should be stellar. In my opinion, 9MFY2022/23 result should be very robust, thereby potentially fuelling SIA share price in the coming months. As such, SIA share price (C6L) should continue to climb in the next few months.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in SIA before. Whether SIA share price (C6L) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

SIA share price at turning point?

Whilst the recent form of SIA share price (C6L) is encouraging, investors should be realistic and not harbour hopes that the counter would revert to the $10 mark in the near future. In fact, SIA share price is being traded at more than $10 in terms of pre-rights issue of 2020. If investors can recall, the cash call in 2020 was mammoth. Back then, the outstanding number of shares amounted to 1.19 billion. With 1.78 billion of new shares issued, that meant that the total number of shares increased by more than 100%.

Besides the rights issue, SIA also [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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