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

Published:
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.
  • - Read this at SGinvestors.io -

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:
    1. - Read this at SGinvestors.io -
    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.

  • Read more at SGinvestors.io.




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 @ https://www.utrade.com.sg/.




Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 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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