- We think that SATS should see q-o-q revenue growth of ~7% in 3QFY24F (Oct to Dec 2023) to ~S$1.37bn, driven by a recovery in cargo demand and higher International visitor arrivals. As such, we expect SATS to report a ~S$28m in PATMI (+70% q-o-q) in 3QFY24F.
Recovery of global cargo volumes accelerated in Nov 23
- - Read this at SGinvestors.io -
- We believe a similar growth rate is likely for Dec 23 given the gifting season, which should support revenue growth for SATS’s cargo business that made up ~49% of SATS’s revenue as of 1H24.
Global passenger demand almost back to pre-COVID levels
- - Read this at SGinvestors.io -
- As such, SATS’s ground handling and aviation food sub-segments should see revenue growth in 3Q23F on stronger seasonal travel. The latter is also likely to translate to higher q-o-q contributions from its associates and joint ventures in China, Japan, and Malaysia.
Operating leverage driven by expected stable cost profile
- 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 2024-01-15
Previous report by CGS-CIMB:
2023-11-13 SATS - Focus On Cashflow After P&L Turnaround .
Price targets by 5 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
