SATS LTD
S58.SI
SATS Ltd - 4Q Operating Data within expectations
- 4QFY03/16 Operating Data came in within our expectations.
- Near-term positive data at Changi Airport is due to biennial seasonality.
- Long-term still positive for Singapore Aviation.
What is the news?
- SATS Ltd (SATS) issued its 4Q and FY03/16 aviation operating data for Changi Airport.
What do we think of this?
4QFY03/16 operating statistics were in line with our expectations
- As such, we do not make any changes to our FY03/16 forecasts prior to the announcement of the 4Q and FY03/16 financial results.
- We are still expecting to see strong Operating Data continue into 1QFY03/17 and partially into 2QFY03/17. This strong growth for SATS relative to Changi Airport is primarily driven by the resumption of service to Jetstar Asia and other Jetstar branded airlines since July 2015 (2QFY03/16), after the account was lost in October 2014 (3QFY03/15).
Maintained at "Accumulate" with higher target price of S$4.17
- While 2MCY2016 Commercial Aircraft Movements and Passenger Movements at Changi Airport grew 6.2% and 10.8% yoy respectively, we hasten to point out that this is due to the odd/even year seasonality effect; there was the biennial Singapore Airshow held from 16 to 21 February.
- Future longer-term catalysts will come from the completion of major projects such as Terminal 4 (2017/18), Project Jewel (2018), Terminal 5 and Runway 3 (both 2020s).
- We maintain our "Accumulate" call on SATS, with a new higher target price of S$4.17 (previously S$4.05) after revising our Operating Data forecasts for FY12/18, FY12/19 and FY12/20.
Richard Leow CFTe
Phillip Securities
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http://www.poems.com.sg/
2016-04-21
Phillip Securities
SGX Stock
Analyst Report
4.17
Up
4.05
