gateway services

SATS well supported by decent dividend yield, strong growth prospects: DBS

SINGAPORE (May 23): DBS Vickers Securities is remaining positive on SATS with a “buy” call and target price of $5.44, on the belief that Changi Airport and regional aviation growth will continue to drive the gateway services provider’s long-term earnings growth.

This comes after SATS ended FY19 with earnings of $248.4 million, down 5% y-o-y due to the absence of one-off gains.

OCBC downgrades SATS back to 'hold' due to limited near-term upside

SINGAPORE (Jan 11): OCBC Investment Research is downgrading SATS back to “hold” while raising its fair value to $5.34 from $5.23 previously, after updating its cost of equity (COE) assumptions to factor in its latest share price rally.

This is because the research house sees diminishing upside in the near-term post SATS’s recent price appreciation, considering how trade tensions and weaker sentiment have impacted emerging market (EM) currencies and trade volumes.

SATS posts 9% fall in 2Q earnings to $66 mil; declares 6-cent dividend

SINGAPORE (Nov 8): SATS Ltd, the provider of gateway and food solutions, has announced 2Q19 earnings of $65.7 million, down 9% from $72.2 million a year ago in the absence of a one-off gain on disposal of assets held for sale, as well as lower contributions from associates/joint ventures (JVs).

Notwithstanding the one-off gain of $7 million in 2Q18 – which was related to the deconsolidation of SHK and restructuring of Jilin Zhong Xin Cheng Food and SG IPF – underlying profit would have grown 0.8% y-o-y, says SATS.

SATS an attractive 'buy' at price levels below $5.15, says OCBC

SINGAPORE (June 14): OCBC Investment Research is upgrading its call on SATS Limited to “buy” from “hold” with an unchanged fair value of $5.50.

The upgrade comes on the belief that the counter now looks attractive at its Wednesday closing price of $5.06 – and will continue to remain so as long as it remains below the share price of $5.15, especially given the group’s expanding presence in Asia.

Steady fundamentals keep SATS's long-term outlook above ground

SINGAPORE (May 31): UOB Kay Hian, DBS Vickers Securities and Maybank Kim Eng are maintaining their “buy” calls on SATS post the gateway services and food solutions provider’s release of its 4Q18 results, which declined from a year ago due to lower associate and joint venture (JV) profits as a result of a one-off accounting treatment, according to the management.

SATS posts 16.3% rise in 2Q earnings to $72.2 mil on higher overseas contributions

SINGAPORE (Nov 9): Gateway solutions provider SATS has announced $72.2 million in earnings for 2QFY17-18, up 16.3% from $62.1 million in the same period a year ago on higher overseas contributions and a one-off gain.

Revenue for the quarter fell 0.8% to $434.8 million from $434.5 million previously, mainly due to a 3.1% decrease in contributions from the Food Solutions segment which was partially mitigated by a 2.3% growth in revenue from Gateway Services to $189.7 million.

Time to play the waiting game on SATS

SINGAPORE (Aug 30): OCBC Investment Research is keeping its “hold” call on SATS and raising its fair value to $4.70 from $4.20 previously, based on the group’s current lofty valuations.   

(See SATS kept at ‘hold’ by OCBC with $4.20 fair value estimate)

SATS wins tender to build and operate Saudi cargo terminal

SINGAPORE (Aug 22): Ground handling and inflight catering service provider SATS has been awarded a tender to build and operate a cargo terminal within Saudi Arabia’s new cargo village in Dammam, which is in the vicinity of King Fahd International Airport (KFIA).

(See Portfolio: We are adding SATS to our high-dividend stocks)

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