SATS - UOB Kay Hian 2022-11-10: 2QFY23 Core Losses Narrowing; Likely To Return To Profitablity Next Quarter

SATS - 2QFY23 Core Losses Narrowing; Likely To Return To Profitablity Next Quarter

Published:
SATS LTD. (SGX:S58) | SGinvestors.ioSATS LTD. (SGX:S58)
  • Excluding government reliefs, one-offs and professional fees related to the WFS deal, SATS’ core net loss stood at S$5m-10m in 2QFY23, a meaningful improvement over 1QFY23’s ex-relief core net losses of S$31.9m.
  • - Read this at SGinvestors.io -
  • Management has updated its financing plan for the WFS deal to use only straight equity and more debt.
  • Maintain BUY recommendation on SATS with an unchanged target price of S$3.08.

Meaningful improvement in SATS' core profitability.

  • SATS (SGX:S58) recorded headline net losses of S$9.9m in 2QFY23 (1HFY23: S$32.5m losses). Stripping out a one-off disposal gain of S$1.9m and government reliefs of S$11.4m, SATS’ 2QFY23 core net loss stood at S$21.6m in 2QFY23.
  • - Read this at SGinvestors.io -
  • Passenger business volume continued to recover; a slight dip in air cargo volume. In line with the aviation sector’s recovery, SATS’ business volume continued to recover in 2QFY23 – the volume of flights handled, meals served and passengers handled rose 20.0%, 28.7% and 29.9% q-o-q respectively.
  • Cargo tonnage handled declined 2.6% q-o-q, likely due to a normalisation of the air cargo business from the pandemic high and the slower near-term demand amid the weakening macroeconomic outlook.
  • Group revenue rose 14.2% q-o-q to S$429m in 2QFY23, driven by q-o-q higher revenue across all regions.

Expecting a turnaround for SATS in 3QFY23.

  • Read more at SGinvestors.io.



Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.



Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2022-11-10



Read also UOB's most recent report:
2025-05-26 SATS - FY25 Core Profit A Slight Beat; Still Aiming For Cargo Volume Growth In FY26.

Previous report by UOB:
2025-04-09 SATS - Hard To Be Bullish At This Juncture; Downgrade To HOLD. .

Price targets by 3 other brokers at SATS Target Prices.

Listing of research reports at SATS Analyst Reports.

Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividend Payout Dates & Corporate Actions,
SATS News






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