- 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.
