- SATS’s FY24 net profit of S$56.4m beat our forecast of S$41.4m, due to slightly better-than-expected margins and higher-than-expected JV/associate contribution in 4QFY24. SATS declared a final dividend of 1.5 cents for FY24.
- - Read this at SGinvestors.io -
- We raise our FY25 net profit forecast for SATS by 36% to S$215m while maintaining FY26 forecast unchanged at S$285m.
FY24 results beat expectations.
- SATS (SGX:S58)'s FY24 headline net profit came in above our expectations at S$56.4m (FY23: loss of S$26.5m), compared with our full-year forecast of S$41.4m. The beat was mainly attributable to:
- - Read this at SGinvestors.io -
- higher-than-expected contribution from JVs and associates.
- Despite overall weaker seasonality, SATS managed to achieve q-o-q higher net profit in 4QFY24 at S$32.7m (3QFY24: S$31.5m). The q-o-q increase was driven by better performance in APAC under SATS's original businesses which benefitted from better operating leverage.
- On the other hand, WFS posted q-o-q lower operating profit of S$38.7m in 4QFY24 (3QFY24: S$67.5m), in line with the weaker seasonality.
- Note that SATS's 4QFY24 headline net profit was adversely impacted by several one-off items, such as integration expenses and impairments of some legacy investments. Excluding these one-off items, SATS's 4QFY24 and FY24 core earnings stood at S$47.3m and S$78.5m, respectively.
Resumes dividend payment.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-05-31
Previous report by UOB:
2024-03-04 SATS - 3QFY24 Results In Line; Earnings Recovery On Track.
Price targets by 2 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
