Singapore Stock Market News

SATS Ltd - Inching up

StockFanatic
Publish date: Thu, 07 Nov 2013, 10:45 AM
StockFanatic
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We continue to like SATS for its 4.9% yield, strong balance sheet with net cash of S$270m and encouraging volume growth in Changi Airport. Maintain Outperform.

2Q14's core net profit was broadly in line with our expectations and consensus's. 1H14 formed about 45% of our full-year forecast. SATS declared a 5 Scts interim dividend, similar to 1H13. We have raised our target price to S$3.88, after rolling forward to CY15, still based on 17.7x P/E, or +1 s.d. of its five-year mean. Catalysts could come from a rebound of earnings in TFK and stronger dividend payout.
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