SATS

SATS: wins contract to provide ramp and baggage handling services for SIA’s 7 daily pax flights at HK Int’l Airport from 1 Oct. contract size is small but underscores SATS’ strategy to serve major customers at key hubs. Of note, SATS’ other customers such as Tiger Air, Lion Air, Cathay Pacific, have increased frequencies with more flights to cities such as BKK, HK, Jakarta, KL. Deutsche reiterates Buy with $3.20 target.