SATS - Recovery Supported By Government Relief
- On 9 Mar, the government announced a S$500m package to support the recovery of the aviation industry. Extension of relief package by the Singapore government will ease SATS (SGX:S58)'s short-term cost pressure before operations normalise to pre-COVID-19 levels.
- On 23 Feb, SATS acquired a 16.4% stake in Asia Airfreight Terminal (AAT) for a consideration of ~$58.5m, to bring its total stake to 65.4%. Increased stake in AAT will contribute positively to cargo business, which has benefitted from secular growth of e-commerce during the pandemic.
- Upgrade SATS to ADD from Hold, with a higher DCF-based target price of S$4.77 (WACC: 7%), after consolidating an estimated share of AAT’s results.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-10 2022-03-10
Read also CGS-CIMB's most recent report:
2023-01-14 SATS - Peek Into Pro-Forma WFS Numbers Ahead.
Previous report by CGS-CIMB:
2022-12-02 SATS - Finalisation Of Funding Structure For WFS Acquisition.