Singapore Stock Market News

SATS Ltd - Trading At Stretched Valuations

StockFanatic
Publish date: Fri, 24 Jul 2015, 03:36 PM
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1QFY16's SGD47m profit (+8.6% YoY) made up 23% of our/consensus FY16 estimates with profit growth aided largely by lower costs across all key expense categories as revenue remained weak (-4.2% YoY). We lift our FY16F-17F profit by 1.7-4.3% as we expect margin expansion to continue and retain NEUTRAL with a higher SGD3.35 TP (9% downside), following the 21% YTD share price surge, which we believe has factored in most of the upside from recent positive news flow.
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