The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0719 GMT - Consolidation among Chinese shipbuilders is likely, with higher orders concentrated among top names like Yangzijiang Shipbuilding, the DBS Group Research team writes in a note. With Korean and Japanese yards likely to benefit from some demand moving toward non-Chinese built vessels, it will likely impact tier two Chinese yards, and driving orders to top tier shipbuilders, they write. The U.S. Trade Representative scaled back its initial proposals, resulting in more manageable port fees and easing some concerns on order cancellations or further orders at Chinese shipyards, they say. Yangzijiang, as one of the world's largest and most profitable shipbuilders, has a strong competitive advantage and balance sheet to survive the near-term uncertainties and structural shifts in U.S. policies, they add. (kimberley.kao@wsj.com)
0504 GMT - Risks to earnings for air carriers ANA and Singapore Airlines are rising due to concerns over potentially lower air travel demand, says Morningstar analyst Nicole Lim. Morningstar downgrades its Uncertainty Ratings for the two airlines to medium from low, to reflect rising global risks and lower earnings visibility, Lim says. Tariffs may disrupt supply chains, leading to increased prices for aircraft parts, Lim says. Maintenance costs could also rise but be offset by falling jet fuel costs. "We think tariff confusion is leading to slower global economic activity with passenger and cargo demand likely to fall, hitting airline revenue," Lim writes. (kimberley.kao@wsj.com)
0134 GMT - Singapore Airlines' FY 2026 earnings could benefit from the recent fall in jet fuel prices, UOB Kay Hian's Roy Chen says in a research report. Prices have dropped around 8% over the past two weeks owing to global recessionary fears, the analyst notes. Assuming jet fuel prices stay at the current level of about US$84/bbl, SIA's average fuel cost per unit of capacity after hedging in FY 2026 would be about 9% lower than FY 2025 average levels, the analyst estimates. The brokerage lifts its FY 2026 and FY 2027 earnings forecasts for SIA by 17% and 6%, respectively. It raises the stock's target price to S$6.22 from S$6.09 with an unchanged hold rating. Shares are 0.2% higher at S$6.39. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 21, 2025 04:20 ET (08:20 GMT)
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