Broker Name: OCBC Group Research
Date of Report: 2 March 2026
Excerpt from OCBC Group Research report.
- SATS Ltd is rated BUY with a revised fair value of SGD 4.32, supported by strong 9MFY26 results in line with expectations and a constructive outlook as it gains cargo market share and benefits from robust passenger volumes.
- The company aims to exceed SGD 8b revenue by FY29, targeting at least 20% EBITDA margin and 15% ROE, focusing on expanding global cargo leadership and strengthening its position as Asia’s top aviation caterer, especially in high-value ready-to-eat meals.
- Recent financials show steady growth: 3QFY26 revenue up 8% YoY to SGD1.6b, operating profit up 18.8% YoY, PATMI up 20.4% YoY, with Gateway Services driving performance and Food Solutions showing positive momentum.
- Key risks include macroeconomic and trade uncertainties, margin pressures from inflation, and potential execution hiccups, while positive catalysts may come from stronger cash flow, higher contributions from associates/JVs, and increased dividends.
- SATS’s diversified global network and new contract wins position it well to capture shifting trade flows, though the fourth quarter is typically seasonally weaker.
Report Summary
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com/group/research
