- SATS (SGX:S58)'s 1Q25 revenue was slightly above our estimates at 27% of our FY25e forecast and rose 15.5% y-o-y to S$1.37bn. Revenue growth came from cargo tonnage and aviation meals volume, which scaled by 19.0% and 26.8% y-o-y respectively.
- - Read this at SGinvestors.io -
- We have raised our FY25e revenue forecast for SATS by 10%, driven by increased cargo and food rates due to the continued recovery in the airline industry and the pronounced synergies from the acquisition of WFS. FY25e PATMI raised by 54% to reflect the increasing contribution from SoAJV and one-offs.
- - Read this at SGinvestors.io -
The Positives
Booming aviation demand driving revenue growth.
- Gateway revenue increased by 12% y-o-y to S$1bn, primarily driven by a 19% rise in cargo tonnage across all regions. This growth was fueled by stronger demand for air cargo services, spurred by robust e-commerce activity and ongoing disruptions in the Red Sea.
- As shipping times lengthen, we expect more time-sensitive goods to shift to air transport, likely sustaining cargo volumes at their current high levels. We expect SATS to gain market share in the European air cargo industry following its merger with WFS. We also expect cargo yields to remain strong, supported by increasing volumes and ongoing cost optimization efforts.
Improving margin.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Liu Miao Miao Phillip Securities Research | https://www.stocksbnb.com/ 2024-08-21
Read also Phillip's most recent report:
2024-11-11 SATS - Volume & Prices Drive Earnings.
Previous report by Phillip:
2024-09-05 SATS - Across The Board Tailwind.
Price targets by 3 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
