Broker Name: OCBC Investment Research
Date of Report: 14 November 2025
Excerpt from OCBC Investment Research report.
Report Summary
- SATS Ltd reported strong financial results for 1HFY26, with revenue and PATMI up by 9.1% and 11.2% year-on-year, beating expectations. The interim dividend increased by a third compared to the previous year.
- SATS is leveraging its global network and the integration of Worldwide Flight Services to drive synergies, aiming for group revenue to surpass SGD8 billion by FY29, with target EBITDA margin and ROE of at least 20% and 15% respectively.
- The company’s diversified footprint and strategic approach to contracts have helped defend market share amid global uncertainty, with management focusing on growth in cargo and food solutions segments.
- Risks include macroeconomic uncertainty, inflationary pressures, and execution hiccups, but potential catalysts are stronger cash flows, growth in associates/JV earnings, and higher dividends.
- SATS’s ESG rating was upgraded in 2024 due to improved raw material sourcing and food safety management, and it has set ambitious carbon reduction and net zero targets.
- OCBC Investment Research maintains a BUY rating with a fair value estimate of SGD3.94, based on a forward P/E multiple, reflecting confidence in SATS’s medium-term prospects.
