SATS’s recovery, which is largely dependent on the easing of air travel restrictions, will only be “meaningful” if green lanes allow discretionary travel, according to CGS-CIMB Research.

This is especially the case if discretionary travel is allowed from China and Indonesia, the brokerage says.

About 19% of the total visitors to Singapore in 2019 are from China, notes CGS-CIMB, citing 2019 data from the Singapore Tourism Board. Another 16% are from Indonesia.

The latest travel agreements with South Korea, New Zealand and Brunei only account for about 4% of total international visitors into Singapore.

“[Hence], we think the pace of recovery could still be slow with only essential travel green lanes being established,” CGS-CIMB head of research Lim Siew Khee writes in a note dated Sept 4.

CGS-CIMB has maintained its “hold” rating for the stock with an unchanged target price of $3.00.

As at 12.21 pm, SATS was down 4 cents or 1.33% at $2.97 with 1.2 million shares changed hands.