What's on your mind?
$SATS(S58.SG)
Context: SATS caught my attention because its airport services and food solutions business could benefit from growing global travel and demand for air cargo.
My trade: I’m taking a longer-term view on SATS as it works to strengthen its international operations and improve profitability.
Takeaway: I’ll pay closer attention to operating margins and earnings growth to see whether increased business activity translates into stronger financial performance.
[Orders / Holdings card]
$SBS Transit(S61.SG)
Oil above US$100 is exposing a big difference between Singapore’s transport plays: SIA, SATS and SBS Transit may all face higher energy costs, but the earnings impact is far from equal.
SIA is taking the hardest hit. FY2026 revenue rose 5% to S$20.5bn and operating profit jumped 39% to S$2.4bn, but the latest quarter shows how quickly oil can change the picture. Net fuel costs surged 78.5% to S$2.25bn, pushing operating profit down 73.8% and the group into a S$76m loss. Its passenger breakeven load factor has also climbed to 87.9%. At S$6.65, the stock trades at about 17x earnings, while RSI near 31 suggests it is approaching oversold territory.
SATS looks more resilient. FY2026 revenue reached a record S$6.35bn, PATMI rose 17% to S$285m and free cash flow turned positive at S$216m. Oil hurts indirectly through airline and cargo volumes rather than directly through jet fuel. At S$3.83, valuation is around 20x earnings, while RSI near 32 and the price below its 50- and 200-day averages point to near-term pressure.
SBS Transit has the strongest structural protection. Its Bus Contracting Model largely passes diesel costs through to LTA. 1H FY2026 revenue rose 5.3%, while operating profit slipped just 0.3%. At S$3.70, it trades around 19x earnings, with the share price above its 50- and 200-day averages.
For dividend investors, my view is to prioritise cash-flow resilience over headline yield. SIA’s dividend is more cyclical, while SATS offers improving cash generation. SBS Transit appears best positioned to weather sustained oil inflation.
The key defence is diversification: don’t let one fuel-sensitive business become the foundation of the income portfolio.
$SATS(S58.SG)
Context: SATS interests me as international travel and air connectivity continue to strengthen, supporting demand for airport services and food solutions.
My trade: I’m taking a longer-term view on SATS and its ability to benefit from recovering passenger traffic and expanding operations across key markets.
Takeaway: I’ll watch passenger volumes, margins and earnings growth to see whether the recovery is translating into sustainable results.
[Orders / Holdings card]
$SATS(S58.SG)
Context: I’ve been watching SATS as the aviation and food-services sector continues to recover.
My trade: Added 100 shares at $3.90, looking to gain exposure to the company’s longer-term growth as travel demand and aviation activity remain strong.
Takeaway: I’ll monitor earnings and passenger volumes closely before deciding whether to add more.
[Orders / Holdings card]
$SATS(S58.SG)
SATS: Why the 15% Drop — and Is the Worst Over?
SATS (S58) did not disappoint on revenue; it disappointed on quality of growth. Q1 FY27 revenue rose 11.3% to S$1.68b, but EBITDA grew only 5.9%, squeezing margin to 17.3%. Profit rose just 6% to S$75.1m. The 18.9% decline in associates/JVs earnings added to the concern.
The bigger issue is cost inflation and execution. Middle East disruptions, flight cuts, labour/input costs and weaker JV volumes are turning strong cargo growth into weaker incremental profits. That explains the market’s reaction.
FY26 fundamentals remain solid: revenue S$6.35b (+9%), PATMI S$285.2m (+17%), EBITDA S$1.15b (+10.6%) and FCF S$215.8m. But leverage deserves watching: debt/EBITDA is ~3.3x and interest coverage ~4.5–5.2x — not dangerous, but hardly comfortable for a low-margin business.
At ~$4.04, valuation is around 21x earnings, while the 7-cent dividend yields only ~1.7%. Technically, the 15% breakdown is bearish.
View: HOLD. Existing shareholders need not panic, but chasing the rebound looks premature. The thesis remains intact if margins recover; below ~$4, the risk/reward becomes more interesting.
Not financial advice.
It will be interesting to see if US-Canada trade war ends up being just a negotiation tactic. It’s not the first time the Trump administration has done this.
US-Canada trade talks collapsed Friday, and new 50% tariffs on roughly $20B of Canadian goods took effect over the weekend, with Ottawa vowing to match them dollar-for-dollar; another round looms Tues...
Markets are turning more volatile as trade tensions, higher yields and geopolitical risks weigh on sentiment, while AI remains a key long-term growth theme.Singapore equities continue to show resilience, supported by strong banks and solid underlying fundamentals.
📊 Stay selective: focus on quality, cash flow and valuation and use market pullbacks to build positions rather than chase momentum.
US-Canada trade talks collapsed Friday, and new 50% tariffs on roughly $20B of Canadian goods took effect over the weekend, with Ottawa vowing to match them dollar-for-dollar; another round looms Tues...
apart from the US Canada fall out, it was relatively quiet over the weekends, and it felt like the lack of substantial news affected the markets today. like to see what sanctions will be imposed on Iran, and how they will be perceived by the markets.
US-Canada trade talks collapsed Friday, and new 50% tariffs on roughly $20B of Canadian goods took effect over the weekend, with Ottawa vowing to match them dollar-for-dollar; another round looms Tues...
The tariff escalation increases the risk of a broader US-Canada trade conflict, raising costs for businesses and potentially adding inflationary pressure. Canada’s planned retaliation could further disrupt cross-border supply chains and weaken business confidence. The immediate market reaction reflects higher uncertainty, particularly as rising Treasury yields already pressure equity valuations. While the affected goods represent a relatively small share of total bilateral trade, prolonged tensions could weigh on growth, corporate margins and investor sentiment if negotiations remain stalled.
US-Canada trade talks collapsed Friday, and new 50% tariffs on roughly $20B of Canadian goods took effect over the weekend, with Ottawa vowing to match them dollar-for-dollar; another round looms Tues...
Bitcoin broke through $75,000 on Friday, marking its best weekly performance in about 2.5 years.
Bitcoin and related derivative financial products have experienced a prolonged slump, with hopes for relief in the near term.
Diversified investment structures represent a relatively healthy strategy.
US-Canada trade talks collapsed Friday, and new 50% tariffs on roughly $20B of Canadian goods took effect over the weekend, with Ottawa vowing to match them dollar-for-dollar; another round looms Tues...
