During UOB Kay Hian’s Asian Gem Conference, management updated that the integration of SATS and WFS has been progressing well and the global air cargo demand appears to be stabilising.
We expect SATS to show sequential earnings improvement in the next few quarters but the realisation of its full earnings potential may only happen in FY26 (2025). Maintain BUY. Target price: S$2.99.
Gradually improving outlook.
- Read this at SGinvestors.io -
- Read this at SGinvestors.io -
Integration with WFS progressing well.
With the major acquisition of WFS (completed in early-Apr 23), SATS has since transformed itself to become the world’s largest air cargo handler (leading shares of volume across major global airports).
Management updated that the integration of SATS and WFS has been progressing very well. The integration efforts have been centered around enhancing productivity through operation excellence and effective cost management.
Leveraging the enlarged network, SATS has also won new contracts of in excess of S$15m p.a. and is working closely with a major global freight forwarder customer to explore cross-border services to enhance speed, streamline processes and harness the potential of multimodal logistics.
Focusing on restoring profitability.
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/.
