Singapore Stock Market News

SATS - TFK at inflection point

StockFanatic
Publish date: Fri, 07 Mar 2014, 11:41 AM
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TFK's contribution to SATS has been lacklustre since it was acquired in 2010, hampered by the 2011 Tohoku earthquake, rising Sino-Japanese tensions since 2012 and falling JPY.

But positive developments are afoot:

1) rise in China visitation numbers to Japan,

2) steady growth in JAL's international traffic, and

3) expanding customer base.

Longer-term outlook is bright as well. Reiterate BUY on SATS with DCF-based TP of SGD3.47.
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