SATS (S58.SG) down 0.4% at $2.88 after reporting 2Q revenue +10.7% on-year, +5.0% on-quarter at $401.2 million, net profit +10.5% on-year, +2.0% on-quarter at $45.2 million. 

Low volume suggests selling pressure not major, stock likely seeing some minor profit-taking after 5-day, 4.0% winning streak to yesterday; while solid outlook for aviation, tourism industry likely to underpin shares medium-term. 

 

OCBC, which keeps Buy call, nudges fair value to $3.31 vs $3.30 says performance positive, achieved amid broad-based growth across business activities with aviation revenue +8.8% on-year, non-aviation 14.1% on-year; expects group to continue to benefit from growth in tourism, aviation business to remain robust in 3Q. 

 

House tips increased penetration in hospitality, healthcare sectors, raises FY11F revenue forecast by 2.2%; orderbook suggests downside likely limited to $2.87 today.