Armada

Armada: UOB Kayhian issued a non-rated note on Armarda Group shortly after 45%-owned associate co, China Mobile Satellite Communications Group announced a twofold increase in subscriber usage a mth after launching its mobile satellite service. CMSCG launched its sale of ‘1349’ mobile satellite SIM cards in early May together with China Telecom Satellite, promoting Thuraya mobile satellite handsets and mobile satellite airtime services to key Chinese distributors. ICSMCG and CTS are the first and only joint-licensee to provide Thuraya’s L-band satellite mobile telecommunications services in China. According to AC Nielson, demand for dual-mode satellite handsets in China is estimated at 320,000-410,000 units a year and could reach 1.33 million to 3.84 million units in 2-3 years’ time. This represents growth of 60% to 110% per year. Armarda’s peers in the satellite communications industry trade at an average historical PE of 18.9x