SATS

SATS: UOB Kay Hian maintains Hold with $3.32 TP. House met with SATS to discuss its medium- and long-term prospects. House is enthused by a potential cargo handling JV in Oman, likely revenue accretion from a catering business at the Sports Hub as well as strong pax throughput at Changi. Pax throughput at Changi has been stronger than expected and this should translate into higher revenue. Meanwhile, a potential cargo JV in Oman will allow it to diversify to an important Middle Eastern gateway. Overall, house maintain HOLD but raise TP by 6% to $3.32. Suggested entry price is $3.15.