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$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...
Shein’s Hong Kong IPO on September 1 could be the market’s biggest show this year. I’m expecting a strong debut—the hype, brand recognition and retail appetite are hard to ignore. But after the initial pop, valuation and regulation could make this a bumpy ride.
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...
This market is like a yoyo. Up down up down. Just watch where the yoyo wants to go. So far trending up. So let’s hope it stays that way. 😊
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...
I have stopped following narratives. If it’s not trade, it’s middle east shenanigan. Non stop wall of worries. Hey wait a minute. Bull markets thrive on that? Is this one? 🤷♂️😂
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...
