SINGAPORE (Nov 5): DBS Group Research is maintaining its “hold” call on airport gateway services provider and food caterer SATS as it was lower costs and the disposal of BRF disposal that led to higher than expected earnings.

In a Thursday report, lead analyst Alfie Yeo says SATS’s 2Q earnings of $59.7 million were ahead of its expectations, thanks to the disposal of its food unit BRF S.A., which was spun off into a JV on 3 June.

Along with prudent cost control measures, EBIT margins improved 4.4 ppts to 14%.

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