Singapore Stock Market News

SATS Ltd - Improving Outlook Already Priced In

StockFanatic
Publish date: Thu, 05 Nov 2015, 01:18 PM
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1HFY16's (Mar) SGD107m profit (+18% YoY) made up 48% of our old FY16 estimate, with profit growth aided by declines in all operating costs save depreciation, as revenue remained weak (-4% YoY). Stay NEUTRAL, with a higher SGD3.70 TP (from SGD3.35, 3% downside) as most of the upside from upcoming operational improvements is priced in. We lift FY16F-17F profit by 5.6-8.5% to account for the continuing margin expansion and higher contributions from its JV in FY17.
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