SATS: Prime beneficiary of pax throughput surge at Changi
- Changi Airport saw a second month of double digit growth in pax movements in Feb (+11.7% y/y) led by growth in Chinese visitor arrivals
- SATS will be best placed to benefit as it handles 80% of meals and flights at Changi.
- JV with Oman Air for cargo handling at Muscat Airport could provide additional catalyst for the stock
- Surprises on the upside in upcoming 4QFY16 (est release: 13/5) could propel stock past its 52-week intraday high of $4.09
- Currently trading at 19.9x forward P/E and indicative yield of 3.5%.
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