SATS - UOB Kay Hian 2023-02-14: 3QFY23 Core Profitability A Slight Miss; Awaiting Completion Of WFS Deal

SATS - 3QFY23 Core Profitability A Slight Miss; Awaiting Completion Of WFS Deal

Published:
SATS LTD. (SGX:S58) | SGinvestors.ioSATS LTD. (SGX:S58)
  • Excluding government relief and one-off acquisition-related expenses, SATS’ 3QFY23 (Oct-Dec 2022) core net losses stood at S$2m-4m in 2QFY23. Despite some q-o-q improvement, 3QFY23 core profitability was still slightly behind our projection, due to faster-than-expected cost ramp-up in preparation of the traffic volume recovery from China.
  • - Read this at SGinvestors.io -
  • Maintain BUY recommendation on SATS with a target price of S$3.28.

Despite q-o-q improvement, SATS' 3QFY23 core profitability was a slight miss...

  • SATS (SGX:S58) recorded a slight headline net profit of S$0.5m in 3QFY23 (3QFY22: S$5.1m), thanks to government reliefs of S$16.7m, but partly offset by one-off acquisition expense of S$11.7m related to the Worldwide Flight Services (WFS) deal – See SATS's Announcement dated 13 Feb 2023.
  • - Read this at SGinvestors.io -

…due to faster-than-expected cost ramp-up in preparation of return of air traffic from China.

  • 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/ 2023-02-14



Read also UOB's most recent report:
2025-04-09 SATS - Hard To Be Bullish At This Juncture; Downgrade To HOLD. .

Previous report by UOB:
2025-02-24 SATS - 3QFY25 Results A Slight Miss; Expect Some Uncertainties For Cargo In FY26.

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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