SATS

SATS: (S$4.62) Embracing robotics as it tackles staff costs and productivity
- Investing in robotics as it seeks to achieve greater operating margins.
- Staff costs are substantial, accounting for 58% (+4ppt) of its total 1QFY17 operating costs.
- The robots will come in useful as the group deals with additional capacity from Changi Airport’s planned expansion
- The recent run up in its share price means that there is little room for error
- Currently trading at 21.3x FY17e P/E and 3.5% FY17e yield