- SATS (SGX:S58) recorded a core PATMI of S$16.8m for 2QFY24 (Jul to Sep 2023) on better operating leverage q-o-q, as revenue grew 7.0% q-o-q, outpacing opex growth of 4.5% q-o-q.
Strong turnaround to profitability in 2QFY24
- - Read this at SGinvestors.io -
- Although staff costs had grown 4.8% q-o-q, we note that staff count had declined marginally by 0.7% q-o-q, suggesting that SATS has reached an optimal level of staffing.
- Contributions from its share of associates and joint ventures (SoAJVs) also improved 8.5% q-o-q to S$23.1m in 2QFY24, as countries such as China and Japan, where SATS serves the aviation catering market, continues to recover.
Recovery in food solutions to drive near-term growth
- - Read this at SGinvestors.io -
- We think the continued recovery in the aviation industry would drive meals served on flights for SATS, resulting in the segment’s EBIT margins reverting towards FY18-20’s average of 14.7% by FY25F.
Keep an eye on cash management
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-13
Read also CGS-CIMB's most recent report:
2024-01-15 SATS - Hopeful Of Improving Profitability Profile.
Price targets by 4 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
