Broker Name: CGS International Securities
Date of Report: April 2, 2026
Excerpt from CGS International Securities report.
Report Summary
- Stock: SATS Ltd (SATS SP)
- Action: Add (reiterate)
- Target Price: S\$4.53 (unchanged)
- Current Price: S\$3.60
- Upside: 25.8%
- Key Thesis: SATS is well-positioned to benefit from increased air cargo demand due to the closure of the Strait of Hormuz and trade re-routing, despite near-term volatility from the Middle East conflict and higher fuel costs.
- Highlights:
- 92.9% of SATS’s revenue is exposed to aviation (cargo handling, ground handling, aviation food).
- Short-term challenges expected from supply chain disruptions, but volumes likely deferred rather than lost.
- Re-rating catalysts include accelerated cargo volumes post-conflict and stronger food solutions business.
- Downside risks: prolonged conflict, extensive flight cancellations, and weaker discretionary demand (e.g., e-commerce).
- Recommendation Rationale: Maintain Add due to SATS’s extensive cargo network, expected market share gains, and resilience to near-term headwinds. No change to earnings estimates unless conflict persists into 2QFY27F.
- Ticker: SATS.SI
above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website : https://www.cgs-cimb.com
