Home Capital Broker's Calls

Disposal gains could lead to higher-than-expected 4Q earnings for SATS

Michelle Zhu
Michelle Zhu5/17/2017 04:28 PM GMT+08  • 2 min read
Disposal gains could lead to higher-than-expected 4Q earnings for SATS
SINGAPORE (May 17): UOB Kay Hian is estimating SATS will post a 25% y-o-y increase in headline net profit when the airline gateway services and food solutions provider reports its FY17 earnings this Friday, versus the street’s implied estimate of 4.3% g
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (May 17): UOB Kay Hian is estimating SATS will post a 25% y-o-y increase in headline net profit when the airline gateway services and food solutions provider reports its FY17 earnings this Friday, versus the street’s implied estimate of 4.3% growth.

This is because the research house believes the street may not have factored in a combined $12 million of gains from the group’s disposal of its 4% stake in Air Airfreight Terminal (AAT), an air cargo handling terminal operator in Hong Kong, as well as its 51% stake in SATS HK, both of which were announced in 4Q.

“Excluding [the disposals], our estimate of 5% growth in core net profit is in line with consensus estimate. We also estimate 13.2 cents in final dividend, assuming all divestment gains from sale of SATS HK and AAT will be distributed to shareholders,” say analysts K Ajith and Sophie Leong in a Wednesday report.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.