Two SGX Stocks Riding High with Travel Recovery

Singapore Airlines (SG:C6L) and Thai Beverage Public Co (SG:Y92) have seen more than 15% growth in their share prices over the last three months. Singapore Airlines’ stock grew due to the recovery in air travel, which has pushed passenger growth for the company. Thai Beverage, on the other hand, posted its annual results, beating expectations.

The TipRank’s Stock Screener tool is a great way to screen stocks from a particular market based on different parameters. Here, we have shortlisted companies based on sectors, market capitalization, and growth in stock prices.

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Let’s see what is driving this growth.

Singapore Airlines Ltd.

Singapore Airlines has its base at Changi Airport and operates in more than 70 destinations.

The company has benefited from the opening up of economies and the surge in air travel. In its half-yearly results for 2022-2023, the company posted record numbers with S$1.23 billion of operating profits. This offset the previous year’s losses of S$620 million. The total revenue during the first half jumped by a huge 197.7% to S$8.4 billion.

After a solid recovery in numbers, the stock gained 17% in the last three months.

The company’s effective capital management, fundraising, employee retention, and operational efficiency helped it tap the huge demand. Moving forward, the company does expect inflation to cause short-term pressure in terms of higher costs. But the company is focused on strict cost control measures to tackle this in an effective way.

Moreover, the company is eyeing its biggest market, China, to fully open, which will further push demand in 2023.

Singapore Airlines Stock Forecast

According to TipRanks’ rating consensus, Singapore Airlines’ stock has a Hold rating.

The C6L stock forecast is S$5.74, which is 1.57% lower than the current price level.

Thai Beverage Public Co. Ltd.

Based in Thailand, Thai Beverage operates in four business segments: Beer, Spirits, Non-alcoholic beverages, and Food. It is among the leading beverage companies in Southeast Asia.

The company’s stock performance was well supported by its annual performance in 2022. In the last three months, the stock has gained 22%and analysts expect further upside.

Talking about the results, Thai Beverage also benefited from the easing of lockdowns and more people turning up to pubs and bars. As a result, beer sales contributed almost 45% of the total company sales in 2022. The total sales revenue of ฿272 billion increased by 13.2% as compared to 2021. The net profits were up by 26.2% to ฿34.5 billion.

The performance was a combination of higher demand along with increased prices throughout the year. The company also managed to achieve efficiency in terms of production, which helped offset the higher costs.

Similar to Singapore Airlines, Thai Beverage is also expecting a high influx of tourists from China in 2023, which will support top-line growth.

Is ThaiBev a Good Stock?

Thai Beverage stock has a Strong Buy rating on TipRanks, based on six Buy recommendations.

The Y92 target price is S$0.86, representing a 22% change from the current price level.

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Conclusion

Both Singapore Airlines and Thai Beverage have posted solid growth in their results, which has driven the share prices as well. Even though the current inflationary pressures pose a short-term threat to these companies, they are well-placed to post higher revenues with the opening of the Chinese economy.

Analysts remain bullish on these stocks in the long term.

Disclosure

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