Brokers' take

SATS | Hold (downgraded) May 21 close: S$5.09 Target price: S$5.05 UOB Kay Hian, May 21

Core net profit for Q4 FY2019 declined by 5 per cent year-on-year (yoy) to S$248.4 million, 4 per cent below our and street forecasts. Excluding S$7 million in one-off gains in FY2018, core net profit for FY2019 grew 2.2 per cent yoy.

A steep 63 per cent decline in associate earnings was the key reason behind the disappointing results.

Air cargo volume is likely to remain weak in FY2020 and is likely to lead to lower gateway services revenue for SATS and its joint ventures. We are also perturbed by the continu…