SATS (SGX:S58) saw 3QFY24 revenue grow 6.5% q-o-q, with gateway services/food solutions revenue up 6.5%/6.8% q-o-q.
A broad-based revenue growth in 3QFY24
Within its gateway services segment, cargo revenue rose 7.7% q-o-q to S$668.8m, following a 7.9% q-o-q increase in cargo tonnage handled, while ground handling services chalked up 4.4% q-o-q growth.
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Share of associates and JVs reached a record high of S$34.6m, up 49.8% q-o-q, in 3QFY24.
Operating leverage improving, albeit at a gradual pace
Core PATMI up 89.3% q-o-q to S$31.8m in 3QFY24 on better operating leverage as revenue/share of associates and JVs grew 6.5%/49.8% q-o-q.
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Nevertheless, we think its OOE should normalise from 4QFY24F, as some FX gains had been recognised in 1HFY24.
We note that its staff costs had also increased, by 4.3% q-o-q in 3QFY24, which management attributed to wage inflation, as well as higher temporary staffing requirements to cope with increased business volumes in 3QFY24.
New contract wins, strategic collaboration to drive growth ahead
Read more at SGinvestors.io.
Above is an excerpt from a research report by CGSI Research. Clients of CGS International may access the full PDF report @ https://itrade.cgsi.com.sg/.
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