Stock Analysis: SATS | Lianhe Zaobao

SATS is rated as Neutral, with a target price raised to RMB 3.84, and the closing price was RMB 3.74. The group maintains operational resilience through the redeployment of capacity and business expansion, successfully integrating with Huanmei Aviation and shifting to route network cargo handling. New contracts with Riyadh Airlines and Turkish Airlines, along with the renewal of contracts with Saudi Arabian Airlines Cargo, highlight its position as a global air cargo operator. The expected cancellation of the small cargo exemption is anticipated to have little impact on cargo in the Americas, with a 5.5% upward revision in the net profit forecast for FY2026