The Haney Group a boutique equity research and management firm based in Hong Kong founded by a diverse private wealth consortium of financial professionals, with a combined knowledge of the stock markets, tax legislation, legal compliance and market analysis. Priding themselves in giving the very best service to their institutional investors, high net worth individuals and private investors today commented on the undervalued share price of Singapore Airlines.
Singapore Airlines have been a household name in the airline business ever since they split and divided off from Malaysian Airlines in 1972 to become a successful independent entity. The company’s majority shareholder is the Singaporean Government, providing the company with great stability, with close links to Changi International Airport (the seventh busiest airport in the world) the airline is securely positioned within the market.
“Singapore Airlines current share price of just over $10.00 Singaporean dollars gives investors a great opportunity, the share value has been at this low position once in the last ten years, fluctuations within the last twelve months have seen upward movements of 70 percent giving it a high of $16.30 dropping due to recent Fed stimulus program news. Share value is set to increases with new orders and new destinations underway, analysts predict the share value to reach over twenty by the year 2015, with air travel between the US and Asia increasing adding further growth,” announced David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.
The airlines total revenues have seen a steady increase over the last three to four years, 2009/2010 they stood at SGD$12.7 billion, 2010/2011 to SGD$14.5 billion and 2013 rising further to SDG$14.8 billion, in a time when most western airlines are happy to stay on par with their previous year’s revenue. The airlines is projected to see substantial growth as Asian economies where they do most of their business, also, with the upsurge in foreign passengers coming to this region the future is set to soar. Singapore Airlines earlier this year announced new aircraft orders to the value of SGD$21 billion shared between the two big manufacturers, Boeing and Airbus, the new airplanes will come online in the next two years, an indication of how Singapore Airlines intend to dominate the Trans Pacific market.
The Haney Group have been following many of Asia’s airlines in the last few years and firmly believe Singapore Airlines have the size and expertise to handle anything the future holds for them. With a fleet of 106 wide-body aircraft and with 65 destinations worldwide in 35 countries they have a vice like grip on many vital business routes between Asia and the North America. Only recently the airline created history by being the first and only carrier to operate an all business class service between the U.S. and Asia from Singapore to New York.
“Through diligent research we can observe that Singapore Airlines have a strong long-term strategy in place, with a determination to be No.1 in their region, we have looked in depth into the finances of Singapore Airlines and as a potential long term investment we are formulating a strategy to best suit our clients’ needs and goals,” added David Roberts, the Senior Vice President of Mergers and Acquisitions at The Haney Group.