SINGAPORE (May 24): OCBC Investment Research has maintained its “hold” recommendation on SATS with a higher fair value estimate of $4.20 on the back of a “steady growth outlook on improving margins”.

SATS’ FY16 revenue fell by 3.1% to $1,698.2m, mainly due to its Food Solutions business where revenue declined 8.0% on transfer of food distribution revenue to joint venture company SATS BRF Food last year, as well as the weakening yen.

(See more: SATS posts 1.7% fall in 4Q earnings at $50.7 mil)

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