SINGAPORE (June 17): CGS-CIMB Research is maintaining SATS at ‘add’ given the stock is a proxy for secular growth in air travel although M&As may require investor to be patient in the short term.
CGS-CIMB says secular demand for travel is key growth driver for SATS. Over the past 19 years, SATS has seen an expansion of the food and gateway services it provided, with capacity handled growing from 22 million passengers in FY00 to 128 million in FY19.
Number of meals served also grew from 21 million to 167 million during the same period. In addition, SATS currently operates in 30 countries, and spans over 60 locations.