SATS - DBS Research 2024-06-04: Outperformance Across All Metrics

• SATS (SGX:S58) reported 4QFY24 net profit of S$32.7mil, marking a 3.8% q-o-q improvement despite 4QFY24 being a seasonally slower period.

4QFY24 was a solid beat across the board

• SATS's FY24 full-year net profit amounted to S$56.4mil, beating the street’s expectation by approximately 14%, largely driven by stronger-than-anticipated operating margins from economies of scale and contributions from associates/JVs. Core net profit, excluding WFS integration costs and one-off impairments on some legacy businesses, was S$47.3mil in 4QFY24, representing an impressive 48.7% increase on a sequential basis.
• - Read this at SGinvestors.io -

Dividend reinstatement was a surprise

• - Read this at SGinvestors.io -
• Having finally returned to profitability without government reliefs, SATS declared a final dividend per share of 1.5 cents representing a payout ratio of ~40%, signalling management’s confidence in sustained business improvement. See SATS's dividend dates.

Business momentum continues to be robust amid travel recovery and a rebound in global cargo volumes.

• Read more at SGinvestors.io.

Jason SUM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-06-04 SGinvestors.io

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