SATS

Singapore aviation services poised to continue to soar: Maybank

SINGAPORE (Nov 26): Maybank Kim Eng Research is positive on the Singapore aviation services sector for 2020, with a pick up in the number of events in 2020 expected to fuel the sector’s continued outperformance.

The sector has survived the turbulent year so far, marked by weak 1H2019 visitor arrivals, shrinking air cargo volume and unrest in Hong Kong.

Despite the turbulence, ST Engineering (STE), SATS and SIA Engineering (SIAEC) recorded revenue growth for 3Q2019, at 27.2%, 9.8% and 1.3% y-o-y respectively.

SATS sees 2Q earnings slide 7.6% to $60.7 mil as higher expenditure outweighs revenue growth

SINGAPORE (Nov 12): Airline gateway services and food solutions provider SATS reported earnings of $60.7 million for 2Q19-20 ended September, some 7.6% lower than earnings of $65.7 million a year ago.

The decline comes despite a 9.8% rise in revenue to $497.4 million, which was outpaced by higher expenditure during the quarter.

Revenue growth was driven by both its food solutions and gateway services business segments. Food solutions revenue grew 8.0% to $271.0 million, while gateway services revenue climbed 12.1% to $225.9 million.

SATS to sell 30% stake in Taj Madras Flight Kitchen to Indian JV for $3.5 mil

SINGAPORE (Sept 29): Airline gateway services and food solutions provider SATS is selling its 30% stake in its inflight catering facility in India, Taj Madras Flight Kitchen, to Taj SATS Air Catering for 178.7 million rupees ($3.5 million).

SATS owns 49% of Taj SATS Air Catering, which is a joint venture between the company and Indian Hotels Company.

Following a corporate restructuring exercise, Taj SATS Air Catering intends to acquire 100% ownership of Taj Madras Flight Kitchen from all its shareholders.

SATS shares tumble after 1Q earnings miss as headwinds mount

SINGAPORE (July 23): Airline gateway services and food solutions provider SATS has seen its share price tumble more than 9% since last week.

On July 18, SATS posted a 14.4% drop in earnings to $54.7 million for the 1Q20 ended June – missing consensus estimates by a mile.

The disappointing results came on the back of weakening air cargo volumes, even as SATS was impacted by one-offs including the suspension of Jet Airways, the grounding of Boeing’s 737 Max aircraft, and credit provisions.

SATS posts 14.4% drop in 1Q earnings to $54.7 mil

SINGAPORE (July 18): Food solutions and gateway services provider SATS posted a 14.4% drop in earnings to $54.7 million for the 1Q19-20 ended June, falling from $63.9 million a year ago.

Earnings per share (EPS) fell 14.0% to 4.9 cents for 1Q19-20, from 5.7 cents in 1Q18-19.

The decline was largely due to higher group expenditure, which rose 9% to $408.3 million, mainly due to the consolidation of GTR entities, Ground Team Red Holdings and Ground Team Red, which took effect from January 2019.

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.

Briefs

SINGAPORE (May 13): “I have waited my entire career to trade a stock like this, and to open an IPO like Uber.”Pete Giacchi, senior trader at Citadel Securities. Uber is set to start trading on May 10.

MAS shifts $45 billion of reserves to GIC in unusual, publicised move

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Singapore Airlines, SATS extend partnership with new five-year contract commitment

SINGAPORE (April 30): Singapore Airlines (SIA) and SATS Ltd have agreed to renew a suite of aviation services contracts for the next five years as part of their bid to strengthen Singapore’s overall competitiveness as a hub.

For the next five years starting from April 1, SIA and SilkAir contracts will have a five-year tenure with the option to extend for another five years. It encompasses inflight catering and cabin handling, passenger and ramp handling, cargo handling, aircraft interior cleaning, aviation security and laundry services.

Maybank stays positive on aviation services sector's medium term growth

SINAPORE (Apr 15): For the period from January to February, Singapore visitor arrivals grew 2% y-o-y, continuing the growth slowdown trend, as the arrivals increased by 2.4% in 4Q18.

China and Asean arrivals were flat for Jan-Feb 2019, with China tourist arrivals seeing an improvement from the 3.7% decline in 4Q18, while Asean bloc was flat y-o-y driven by 2.3%/5.8%/2.1% declines from Indonesia/Thailand/ Vietnam arrivals offsetting growth from Malaysia, Philippines and smaller markets.

12 stocks that could get a boost from IR 2.0

SINGAPORE (Apr 5): The $9 billion investment to renew and refresh Singapore’s two integrated resorts (IRs) could provide some vibrancy to the domestic economy in the next few years and whip up some optimism in the city-state, says CGS-CIMB Research.

“The economic implication of this transformation will first be felt in the construction sector before having a multiplier effect on the rest of the economy via service-producing industries (jobs creation),” says analyst Lim Siew Khee in a Friday report.

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