SATS - UOB Kay Hian 2023-08-16: 1QFY24 Core Performance In Line; Focusing On Integration & Synergy Delivery

SATS - 1QFY24 Core Performance In Line; Focusing On Integration & Synergy Delivery

SATS (SGX:S58) | SGinvestors.ioSATS (SGX:S58)
  • Excluding accounting treatment difference and one-off integration expenses, SATS (SGX:S58)’s 1QFY24 core net loss of S$17.4m was in line with our expectations.
  • Core earnings of SATS’s original businesses achieved a turnaround in 1QFY24 while WFS’ performance was still affected by the subdued near-term global trade outlook. Management is committed to accelerating the integration of WFS and driving synergy realisation.
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Core performance in line with our expectations.

  • SATS’s headline net loss of S$29.9m in 1QFY24 (Apr to Jun 2023) came in better than our previously guided net loss of S$57m-83m, only due to the change in accounting treatment towards:
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    2. WFS’ previously captialised interest cost of S$20m.
  • Previously, we were expecting this S$60m accounting impact to be charged through SATS’s P/L in 1Q as per SATS’s previous guidance. However, after a review with its financial advisers, SATS has decided to account for these items through balance sheet (giving rise to higher acquisition goodwill), instead of expensing them through P/L. Excluding this S$60m accounting difference and the impact of one-off integration expense of S$12.6m, the Group’s 1QFY24 core net loss of S$17.4m is deemed in line with our expectations.

SATS’ original businesses turned around.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Roy Chen CFA UOB Kay Hian Research | 2023-08-16

Read also UOB's most recent report:
2024-01-10 SATS - Earnings Recovery To Gain Traction In 2024; Red Sea Crisis To Benefit Air Cargo.

Previous report by UOB:
2023-11-14 SATS - Earnings Turn Around In 2QFY24, Though Pace Of Recovery Still Moderate.

Price targets by 2 other brokers at SATS Target Prices.

Listing of research reports at SATS Analyst Reports.

Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividends & Corporate Actions,
SATS News Articles


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