SATS - OCBC Investment 2024-11-08: Cleared For Take Off

• SATS (SGX:S58) reported a strong set of results for 2QFY25. Revenue for the quarter was up 14.1% y-o-y to S$1.5b. Growth was broad-based across all segments.
  • Revenue for Gateway Services grew 10.3% y-o-y to S$1.1b as air cargo volumes increased another 3.2% q-o-q to 2.2m tons, supported by e-commerce demand and a shift from ocean to air freight due to disruptions in the Red Sea.
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• Expenses for the quarter grew at a slower 9.9% y-o-y to S$1.2b; as a result, operating profit nearly doubled to S$127.2m. This translates to a q-o-q expansion of EBIT margin from 8.2% to 8.8%.
• Together with a 28.6% y-o-y increase in its share of results of associates and joint ventures (SoAJV), SATS's PATMI grew S$47.5m y-o-y to S$69.7m.

Overall 1HFY25 results were a slight beat.

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• SATS’s 1HFY25 revenue and PATMI came in at 50.9% and 51.7% of our initial full year forecasts, respectively.

Interim dividend of S$0.015 declared

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Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-11-08 SGinvestors.io

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