- The US’ change in de minimis tax rule for air cargo is a negative development for SATS, but its negative earnings impact should be capped at high single digit in FY26-27 by our estimate and are also likely to have been priced in by the recent decline of SATS's share price.
The US tariff hikes.
- - Read this at SGinvestors.io -
- The administration has indicated that similar tariffs on European Union products are under consideration.
Change in de minimis tax rule.
- In conjunction with these tariffs, the executive orders also eliminate the de minimis tax exemption rule, which previously allowed small packages valued under US$800 to enter the US without incurring tariffs. This change is expected to significantly impact cross-border e-commerce, particularly affecting Chinese retailers like Shein and Temu that have utilised this exemption to offer lower-priced goods directly to US consumers.
- - Read this at SGinvestors.io -
Expect negative earnings impacts on SATS...
- Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-02-04
Read also UOB's most recent report:
2025-02-24 SATS - 3QFY25 Results A Slight Miss; Expect Some Uncertainties For Cargo In FY26.
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 Dividend Payout Dates & Corporate Actions,
SATS News
