- Cargo is expected to remain resilient, despite near-term volatility of the global trade. We like SATS for its longer-term growth outlook.
1QFY26 results in line, with net profit rising 9.1% y-o-y.
- - Read this at SGinvestors.io -
- Within the gateway segment, cargo revenue grew 12.2% y-o-y, on the back of a 10.4% y-o-y growth in volume and a 1.7% y-o-y improvement in cargo handling ASP.
Key factors driving y-o-y earnings improvement include:
- Positive impacts from contract renewal with SIA (SGX:C6L) - recall that no impact was booked in 1QFY25, but 2QFY25 booked the positive impacts for both 1Q and 2QFY25;
- - Read this at SGinvestors.io -
- SATS’ stronger cargo volume growth, which is above industry average.
Net gearing continues to step down.
- Read more at SGinvestors.io.
