SATs

SATs: Co. has appointed Mr Tan Chuan Lye as its CEO with effect from 1 Apr12. Mr Tan has been holding this post on an interim basis since Jul 11, while the Board was looking for a replacement. Having done an effective job, SATS has decided to make the appointment permanent.

Mr Tan has been with the Group since 1976 and has held managerial positions in SIA Ground Services and SATS Airport Services, and was responsible for both SIA and SATS’ Changi Terminal 2 operations. Besides keeping a steady helm, Mr Tan oversaw the disposal of Daniels and managed to turnaround the operations of recent acquisition Tokyo Flight Kitchen. Ratings as follows:

-Kim Eng maintains Buy call on SATS to $2.70TP. Basic div yield is attractive at 4.7%, and do not exclude possibility of a special div derived from proceeds from sale of Daniels.
- Deutsche maintains Hold, TP $2.33, believe the appointment of Mr Tan is positive, as it removes the overhang around SATS' CEO succession.
- Nomura maintains Buy, TP $2.90, think the appointment will dispel some investor concerns over SATS’s future, and will enable mgt to concentrate on the business at hand.