SATS: Slightly below consensus. 3Q Rev at 442.3m +32.3% yoy +18.1% qoq but net profit at $38.2m -25.4% yoy -6.0% qoq. Net profit was impacted by the disposal of Daniels Group in the UK which saw a loss on disposal of $5.5m. Share of profits from associates also fell due to weaker cargo volumes. Increase in rev attributed to consolidation of TFK grp which contributed $82m more to rev. Margins were under pressure with operating margin -3% yoy (-1.2% excluding TFK contributions) largely due to higher staff costs and raw material costs.
Co expects Jan-Mar quarter to moderate as the 1Q is usually the low season for Sg's aviation sector as well as an anticipated slowdown in the economy. The recent announcements by carrier to increase capacity and add new routes present opportunities for SATS.
DB maintains Hold with TP$2.33 and expects a net yield of 5% for 2012.
No comments:
Post a Comment