Sitting tight
Aviation Services | 22 September 2011
HOLD
SATS
Company Update
Sitting tight
Analyst
Event Despite stiff global economic headwinds and pressure from rising costs, SATS is still well‐positioned to maintain its revenue base and expand on recent acquisitions. At 1.6x P/B, the stock is trading below its mean P/B of 1.8x. We do not see any immediate catalysts for an upward re‐rating, but the company’s steady dividend payout should keep investors happy while waiting for its growth opportunities to pay off. Maintain HOLD with the target price at $2.43.
Rohan Suppiah [email protected] (65) 6432 1455
Price Target ST Index
$2.28 $2.43 2,791.79
Our View SATS’ aviation‐related business continues to be buoyed by decent monthly Singapore visitor arrivals, which have hovered around the 1.1m mark. While a significant part of the growth is being driven by low cost carriers, which typically require less of SATS’ service offerings, the company still has a 75% market share for gateway services and 86% for food solutions. Operating costs are climbing but SATS still has good leeway to pass on higher food costs to its aviation‐related customers. Its clientele is mainly full service carriers, which are more dependent on SATS for their in‐flight solutions as opposed to the low cost carriers. For non‐aviation customers, the passing on of higher input prices is also justifiable. In addition, SATS is striving to further improve its own efficiency. The results for the bid to operate the $500m Singapore International Cruise Centre (ICT) should be known by next month. There are three parties vying for the deal, with the incumbents Singapore Cruise Centre and SATS (in partnership with a Spanish operator) recently joined by Jurong Port. As it is, SATS feels reasonably confident of securing the bid and should be able to hit the ground running as it currently operates a Cruise‐Fly handling service with Royal Caribbean Cruises.
Historical Chart Vol ('000)
Price ($) 3.00
10,000
2.80
8,000
2.60
6,000
2.40 4,000
2.20
Performance
26‐Jul‐11
20‐Sep‐11
28‐Jun‐11
23‐Aug‐11
31‐May‐11
05‐Apr‐11
03‐May‐11
08‐Mar‐11
11‐Jan‐11
08‐Feb‐11
19‐Oct‐10
0 14‐Dec‐10
2,000
1.80 21‐Sep‐10
2.00
16‐Nov‐10
Absolute (%)
1m 6.5
3m ‐8.4
6m ‐9.8
Relative (%)
4.3
‐0.1
‐3.0
Stock Information
Ticker code SIAT.SI SATS SP 1,951.8 Market cap (US$m) 2.889 52‐week high (S$) 2.060 52‐week low (S$) 1,107.9 Shares issued (m) 2.7 6m avg d.vol (US$m) Free float (%) 56.0 Major shareholders (%) Temasek Holdings (44.0)
Action & Recommendation We expect earnings to hold steady in FY Mar12, with a 15% growth in FY Mar13 to be led by a recovery at its subsidiary TFK in Japan. SATS’ dividend yield of 5‐ 6% should be supported by strong free cash flow. Maintain HOLD.
Year End Mar 31 Sales (S$m) Net profit (S$m) EPS (S cts) Underlying net profit (S$m) Underlying EPS (S cts) Growth (%) PER (x) EV/EBITDA (x) Yield (%)
Key Indicators
ROE (%) Net cash (S$m) NTA (S$) Interest cover (x)
12.5 290.0 1.40 38.0
2010 1,538.9 181.2 16.7 164.1 15.1 3.0 13.7 8.5 5.7
2011 2012F 2013F 1,729.1 2,016.4 2,101.8 191.4 194.8 219.8 17.4 17.5 19.6 197.4 189.3 219.8 17.9 17.1 19.6 19.0 ‐5.0 15.0 13.1 13.0 11.6 8.6 7.9 7.0 7.5 4.8 5.7
2014F 2,225.3 249.6 22.1 249.6 22.1 13.0 10.3 6.0 6.1
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Co. Reg No: 198700034E MICA (P) : 090/11/2009
SATS
22 September 2011
Figure 1: SATS’ PER bands $ 5.00 19x
4.00
15x 3.00 11x 2.00
7x
1.00
3x Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
Apr‐03
Apr‐02
Apr‐01
0.00
Source: Company data, Bloomberg
Figure 2: SATS’ P/B bands $ 4.00
2.5x
Apr‐10
Apr‐08
Apr‐07
Apr‐04
Apr‐03
0.00
Apr‐11
0.5x Apr‐09
1.00
Apr‐06
1.5x 1.0x
Apr‐05
2.00
Apr‐02
2.0x
Apr‐01
3.00
Source: Company data, Bloomberg
Figure 3: Statistical analysis of SATS’ historical PER and P/B P/E (x)
P/B (x)
20.0
3.0
18.0
+σ = 15.63x
2.5
16.0
+σ = 2.11x
Mean = 12.68x
14.0
2.0
12.0 Mean = 1.77x
1.5
10.0
‐σ = 1.43x
‐σ = 9.74x
8.0
1.0
6.0
Source: Company data, Bloomberg
2
Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
Apr‐03
Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
0.5 Apr‐03
4.0
SATS Ltd
22 September 2011
Profit and loss YE Mar 31 (S$m) Sales Cost of goods sold Gross profit Other income Operating expenses Operating profit Net interest income (exp) Share of associates Net exceptional Pretax income Income taxes Minority interest Net income EPS (S cts) EBITDA
Cash flow 2010 2011 2012F 2013F 2014F 1,538.9 1,729.1 2,016.4 2,101.8 2,225.3 0.0 0.0 0.0 0.0 0.0 1,538.9 1,729.1 2,016.4 2,101.8 2,225.3 0.0 0.0 0.0 0.0 0.0 ‐1,354.5 ‐1,544.6 ‐1,826.8 ‐1,883.2 ‐1,971.6 184.4 184.5 189.5 218.6 253.7 ‐3.8 ‐0.2 ‐2.5 ‐2.5 ‐2.5 41.9 61.2 64.3 67.5 70.8 0.5 0.0 0.0 0.0 0.0 223.0 245.5 251.3 283.6 322.0 ‐40.9 ‐53.7 ‐56.5 ‐63.8 ‐72.5 0.9 0.4 0.0 0.0 0.0 181.2 191.4 194.8 219.8 249.6 16.7 17.4 17.5 19.6 22.1 275.2 280.6 302.5 336.3 378.3
Source: Company data, Kim Eng estimates
3
2010 2011 254.2 200.3 223.0 245.5 90.8 96.1 24.2 ‐33.4 ‐83.8 ‐107.9 ‐14.7 ‐94.6 ‐61.3 ‐67.7 20.4 39.8 26.2 ‐66.7 ‐320.6 1.8 28.0 30.8 ‐226.3 112.9 ‐118.9 ‐143.5 ‐3.4 1.6 ‐81.1 107.5 192.9 132.6
2012F 148.9 251.3 112.9 ‐56.9 ‐158.5 ‐33.7 ‐60.0 ‐20.8 47.1 ‐69.8 0.3 45.1 ‐122.9 7.7 45.3 88.9
2013F 215.1 283.6 117.7 ‐4.7 ‐181.5 ‐10.0 ‐60.0 0.0 50.0 ‐146.6 0.0 0.0 ‐146.6 0.0 58.5 155.1
2014F 242.8 322.0 124.6 ‐6.8 ‐197.0 ‐10.0 ‐60.0 0.0 50.0 ‐159.3 0.0 0.0 ‐159.3 0.0 73.5 182.8
2012F
2013F
2014F
16.6 2.7 7.8 1.8 0.8
4.2 15.3 11.2 12.8 11.8
5.9 16.1 12.5 13.6 12.6
NA 9.4 15.0 9.7 8.2 12.5
NA 10.4 16.0 10.5 8.9 13.5
NA 11.4 17.0 11.2 9.7 14.6
13.3 ‐7.3 37.9 0.9 29.8 0.7 1.5 1.4 ‐124.2
12.7 ‐10.3 43.7 1.1 43.0 1.0 1.6 1.5 ‐182.7
12.1 ‐13.8 50.7 1.2 48.6 1.2 1.7 1.6 ‐256.2
17.5 13.4 142.6 181.7 27.2 11.0
19.6 19.2 147.9 187.7 30.0 13.0
22.1 21.5 154.5 196.9 33.5 14.0
2010 1,909.1 485.7 196.4 0.0 245.1 43.1 1.1 1,423.4 349.2 594.4 17.9 461.9 409.0 277.3 263.2 13.4 0.7 131.7 10.0 121.7 1,500.1 288.0 1,224.4 ‐30.6 18.3
Source: Company data, Kim Eng estimates
Operating cash flow Pretax income Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Change in other assets Financing cash flow Change in share capital Net change in debt Dividends paid Change in other LT liab. Net cash flow Free cash flow
Source: Company data, Kim Eng estimates
Balance sheet YE Mar 31 (S$m) Total assets Current assets Cash ST investments Trade & other receivables Inventory Others Other assets LT investments Net fixed assets Others Intangible Total liabilities Current liabilities Trade & other payables ST debt Others Long‐term liabilities LT debt Others Total equity Paid‐in capital Reserve Others Minority interest
YE Mar 31 (S$m)
2011 2,298.1 687.7 303.9 0.0 319.1 59.4 5.3 1,610.4 342.5 731.9 47.1 488.9 691.6 493.6 329.8 159.2 4.6 198.0 20.7 177.3 1,616.5 324.7 1,272.4 ‐75.9 95.3
2012F 2,426.8 782.7 349.2 0.0 362.9 70.6 0.0 1,644.1 363.3 791.9 50.0 438.9 732.6 522.6 322.6 200.0 0.0 210.0 25.0 185.0 1,694.2 325.0 1,344.2 ‐75.0 100.0
2013F 2,513.7 859.6 407.7 0.0 378.3 73.6 0.0 1,654.1 363.3 851.9 50.0 388.9 746.3 536.3 336.3 200.0 0.0 210.0 25.0 185.0 1,767.4 325.0 1,417.4 ‐75.0 100.0
2014F 2,623.7 959.6 481.2 0.0 400.6 77.9 0.0 1,664.1 363.3 911.9 50.0 338.9 766.0 556.0 356.0 200.0 0.0 210.0 25.0 185.0 1,857.7 325.0 1,507.7 ‐75.0 100.0
Key ratios YE Mar 31 Growth (% YoY) Sales OP EBITDA NP EPS Profitability (%) Gross margin Operating margin EBITDA margin Net profit margin ROA ROE Stability Gross debt (cash)/equity (%) Net debt (cash)/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Net debt (cash) (S$m) Per share data (S cts) EPS CFPS BVPS SPS EBITDA/share DPS
2010 44.9 7.9 16.9 23.5 22.8 NA 12.0 17.9 11.8 9.2 12.6 1.6 ‐11.5 34.8 9.9 48.0 13.6 1.8 1.6 ‐173.0 16.7 23.4 135.6 141.8 25.4 13.0
Source: Company data, Kim Eng estimates
2011 12.4 0.1 2.0 5.6 4.2 NA 10.7 16.2 11.1 9.1 12.7 11.1 ‐7.7 65.9 1.1 71.5 1.2 1.4 1.3 ‐124.0 17.4 18.2 137.3 157.2 25.5 17.0
SATS Ltd
22 September 2011
SINGAPORE
INDONESIA
PHILIPPINES
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Recommendation definitions Our recommendation is based on the following expected price performance within 12 months:
+15% and above: BUY ‐15% to +15%: HOLD ‐15% or worse: SELL
SATS Ltd
22 September 2011
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SATS Ltd
22 September 2011
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HOLD
SATS
Company Update
Sitting tight
Analyst
Event Despite stiff global economic headwinds and pressure from rising costs, SATS is still well‐positioned to maintain its revenue base and expand on recent acquisitions. At 1.6x P/B, the stock is trading below its mean P/B of 1.8x. We do not see any immediate catalysts for an upward re‐rating, but the company’s steady dividend payout should keep investors happy while waiting for its growth opportunities to pay off. Maintain HOLD with the target price at $2.43.
Rohan Suppiah [email protected] (65) 6432 1455
Price Target ST Index
$2.28 $2.43 2,791.79
Our View SATS’ aviation‐related business continues to be buoyed by decent monthly Singapore visitor arrivals, which have hovered around the 1.1m mark. While a significant part of the growth is being driven by low cost carriers, which typically require less of SATS’ service offerings, the company still has a 75% market share for gateway services and 86% for food solutions. Operating costs are climbing but SATS still has good leeway to pass on higher food costs to its aviation‐related customers. Its clientele is mainly full service carriers, which are more dependent on SATS for their in‐flight solutions as opposed to the low cost carriers. For non‐aviation customers, the passing on of higher input prices is also justifiable. In addition, SATS is striving to further improve its own efficiency. The results for the bid to operate the $500m Singapore International Cruise Centre (ICT) should be known by next month. There are three parties vying for the deal, with the incumbents Singapore Cruise Centre and SATS (in partnership with a Spanish operator) recently joined by Jurong Port. As it is, SATS feels reasonably confident of securing the bid and should be able to hit the ground running as it currently operates a Cruise‐Fly handling service with Royal Caribbean Cruises.
Historical Chart Vol ('000)
Price ($) 3.00
10,000
2.80
8,000
2.60
6,000
2.40 4,000
2.20
Performance
26‐Jul‐11
20‐Sep‐11
28‐Jun‐11
23‐Aug‐11
31‐May‐11
05‐Apr‐11
03‐May‐11
08‐Mar‐11
11‐Jan‐11
08‐Feb‐11
19‐Oct‐10
0 14‐Dec‐10
2,000
1.80 21‐Sep‐10
2.00
16‐Nov‐10
Absolute (%)
1m 6.5
3m ‐8.4
6m ‐9.8
Relative (%)
4.3
‐0.1
‐3.0
Stock Information
Ticker code SIAT.SI SATS SP 1,951.8 Market cap (US$m) 2.889 52‐week high (S$) 2.060 52‐week low (S$) 1,107.9 Shares issued (m) 2.7 6m avg d.vol (US$m) Free float (%) 56.0 Major shareholders (%) Temasek Holdings (44.0)
Action & Recommendation We expect earnings to hold steady in FY Mar12, with a 15% growth in FY Mar13 to be led by a recovery at its subsidiary TFK in Japan. SATS’ dividend yield of 5‐ 6% should be supported by strong free cash flow. Maintain HOLD.
Year End Mar 31 Sales (S$m) Net profit (S$m) EPS (S cts) Underlying net profit (S$m) Underlying EPS (S cts) Growth (%) PER (x) EV/EBITDA (x) Yield (%)
Key Indicators
ROE (%) Net cash (S$m) NTA (S$) Interest cover (x)
12.5 290.0 1.40 38.0
2010 1,538.9 181.2 16.7 164.1 15.1 3.0 13.7 8.5 5.7
2011 2012F 2013F 1,729.1 2,016.4 2,101.8 191.4 194.8 219.8 17.4 17.5 19.6 197.4 189.3 219.8 17.9 17.1 19.6 19.0 ‐5.0 15.0 13.1 13.0 11.6 8.6 7.9 7.0 7.5 4.8 5.7
2014F 2,225.3 249.6 22.1 249.6 22.1 13.0 10.3 6.0 6.1
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Co. Reg No: 198700034E MICA (P) : 090/11/2009
SATS
22 September 2011
Figure 1: SATS’ PER bands $ 5.00 19x
4.00
15x 3.00 11x 2.00
7x
1.00
3x Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
Apr‐03
Apr‐02
Apr‐01
0.00
Source: Company data, Bloomberg
Figure 2: SATS’ P/B bands $ 4.00
2.5x
Apr‐10
Apr‐08
Apr‐07
Apr‐04
Apr‐03
0.00
Apr‐11
0.5x Apr‐09
1.00
Apr‐06
1.5x 1.0x
Apr‐05
2.00
Apr‐02
2.0x
Apr‐01
3.00
Source: Company data, Bloomberg
Figure 3: Statistical analysis of SATS’ historical PER and P/B P/E (x)
P/B (x)
20.0
3.0
18.0
+σ = 15.63x
2.5
16.0
+σ = 2.11x
Mean = 12.68x
14.0
2.0
12.0 Mean = 1.77x
1.5
10.0
‐σ = 1.43x
‐σ = 9.74x
8.0
1.0
6.0
Source: Company data, Bloomberg
2
Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
Apr‐03
Apr‐11
Apr‐10
Apr‐09
Apr‐08
Apr‐07
Apr‐06
Apr‐05
Apr‐04
0.5 Apr‐03
4.0
SATS Ltd
22 September 2011
Profit and loss YE Mar 31 (S$m) Sales Cost of goods sold Gross profit Other income Operating expenses Operating profit Net interest income (exp) Share of associates Net exceptional Pretax income Income taxes Minority interest Net income EPS (S cts) EBITDA
Cash flow 2010 2011 2012F 2013F 2014F 1,538.9 1,729.1 2,016.4 2,101.8 2,225.3 0.0 0.0 0.0 0.0 0.0 1,538.9 1,729.1 2,016.4 2,101.8 2,225.3 0.0 0.0 0.0 0.0 0.0 ‐1,354.5 ‐1,544.6 ‐1,826.8 ‐1,883.2 ‐1,971.6 184.4 184.5 189.5 218.6 253.7 ‐3.8 ‐0.2 ‐2.5 ‐2.5 ‐2.5 41.9 61.2 64.3 67.5 70.8 0.5 0.0 0.0 0.0 0.0 223.0 245.5 251.3 283.6 322.0 ‐40.9 ‐53.7 ‐56.5 ‐63.8 ‐72.5 0.9 0.4 0.0 0.0 0.0 181.2 191.4 194.8 219.8 249.6 16.7 17.4 17.5 19.6 22.1 275.2 280.6 302.5 336.3 378.3
Source: Company data, Kim Eng estimates
3
2010 2011 254.2 200.3 223.0 245.5 90.8 96.1 24.2 ‐33.4 ‐83.8 ‐107.9 ‐14.7 ‐94.6 ‐61.3 ‐67.7 20.4 39.8 26.2 ‐66.7 ‐320.6 1.8 28.0 30.8 ‐226.3 112.9 ‐118.9 ‐143.5 ‐3.4 1.6 ‐81.1 107.5 192.9 132.6
2012F 148.9 251.3 112.9 ‐56.9 ‐158.5 ‐33.7 ‐60.0 ‐20.8 47.1 ‐69.8 0.3 45.1 ‐122.9 7.7 45.3 88.9
2013F 215.1 283.6 117.7 ‐4.7 ‐181.5 ‐10.0 ‐60.0 0.0 50.0 ‐146.6 0.0 0.0 ‐146.6 0.0 58.5 155.1
2014F 242.8 322.0 124.6 ‐6.8 ‐197.0 ‐10.0 ‐60.0 0.0 50.0 ‐159.3 0.0 0.0 ‐159.3 0.0 73.5 182.8
2012F
2013F
2014F
16.6 2.7 7.8 1.8 0.8
4.2 15.3 11.2 12.8 11.8
5.9 16.1 12.5 13.6 12.6
NA 9.4 15.0 9.7 8.2 12.5
NA 10.4 16.0 10.5 8.9 13.5
NA 11.4 17.0 11.2 9.7 14.6
13.3 ‐7.3 37.9 0.9 29.8 0.7 1.5 1.4 ‐124.2
12.7 ‐10.3 43.7 1.1 43.0 1.0 1.6 1.5 ‐182.7
12.1 ‐13.8 50.7 1.2 48.6 1.2 1.7 1.6 ‐256.2
17.5 13.4 142.6 181.7 27.2 11.0
19.6 19.2 147.9 187.7 30.0 13.0
22.1 21.5 154.5 196.9 33.5 14.0
2010 1,909.1 485.7 196.4 0.0 245.1 43.1 1.1 1,423.4 349.2 594.4 17.9 461.9 409.0 277.3 263.2 13.4 0.7 131.7 10.0 121.7 1,500.1 288.0 1,224.4 ‐30.6 18.3
Source: Company data, Kim Eng estimates
Operating cash flow Pretax income Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Change in other assets Financing cash flow Change in share capital Net change in debt Dividends paid Change in other LT liab. Net cash flow Free cash flow
Source: Company data, Kim Eng estimates
Balance sheet YE Mar 31 (S$m) Total assets Current assets Cash ST investments Trade & other receivables Inventory Others Other assets LT investments Net fixed assets Others Intangible Total liabilities Current liabilities Trade & other payables ST debt Others Long‐term liabilities LT debt Others Total equity Paid‐in capital Reserve Others Minority interest
YE Mar 31 (S$m)
2011 2,298.1 687.7 303.9 0.0 319.1 59.4 5.3 1,610.4 342.5 731.9 47.1 488.9 691.6 493.6 329.8 159.2 4.6 198.0 20.7 177.3 1,616.5 324.7 1,272.4 ‐75.9 95.3
2012F 2,426.8 782.7 349.2 0.0 362.9 70.6 0.0 1,644.1 363.3 791.9 50.0 438.9 732.6 522.6 322.6 200.0 0.0 210.0 25.0 185.0 1,694.2 325.0 1,344.2 ‐75.0 100.0
2013F 2,513.7 859.6 407.7 0.0 378.3 73.6 0.0 1,654.1 363.3 851.9 50.0 388.9 746.3 536.3 336.3 200.0 0.0 210.0 25.0 185.0 1,767.4 325.0 1,417.4 ‐75.0 100.0
2014F 2,623.7 959.6 481.2 0.0 400.6 77.9 0.0 1,664.1 363.3 911.9 50.0 338.9 766.0 556.0 356.0 200.0 0.0 210.0 25.0 185.0 1,857.7 325.0 1,507.7 ‐75.0 100.0
Key ratios YE Mar 31 Growth (% YoY) Sales OP EBITDA NP EPS Profitability (%) Gross margin Operating margin EBITDA margin Net profit margin ROA ROE Stability Gross debt (cash)/equity (%) Net debt (cash)/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Net debt (cash) (S$m) Per share data (S cts) EPS CFPS BVPS SPS EBITDA/share DPS
2010 44.9 7.9 16.9 23.5 22.8 NA 12.0 17.9 11.8 9.2 12.6 1.6 ‐11.5 34.8 9.9 48.0 13.6 1.8 1.6 ‐173.0 16.7 23.4 135.6 141.8 25.4 13.0
Source: Company data, Kim Eng estimates
2011 12.4 0.1 2.0 5.6 4.2 NA 10.7 16.2 11.1 9.1 12.7 11.1 ‐7.7 65.9 1.1 71.5 1.2 1.4 1.3 ‐124.0 17.4 18.2 137.3 157.2 25.5 17.0
SATS Ltd
22 September 2011
SINGAPORE
INDONESIA
PHILIPPINES
Stephanie WONG Head of Research Regional Head of Institutional Research +65 6432 1451 [email protected] Strategy Small & Mid Caps Gregory YAP +65 6432 1450 [email protected] Conglomerates Technology & Manufacturing Transport & Telcos Rohan SUPPIAH +65 6432 1455 [email protected] Airlines Marine & Offshore Wilson LIEW +65 6432 1454 [email protected] Hotel & Resort Property & Construction Anni KUM +65 6432 1470 [email protected] Conglomerates REITs James KOH +65 6432 1431 [email protected] Finance & Banking Logistics Resources Eric ONG +65 6432 1857 [email protected] Marine & Offshore Energy OOI Yi Tung +65 6433 5712 [email protected] Property & Construction YEAK Chee Keong, CFA +65 6433 5730 [email protected] Retail & Consumer Engineering Infrastructure
Katarina SETIAWAN Head of Research +6221 2557 1125 [email protected] Consumer Infra Shipping Strategy Telcos Others Ricardo SILAEN +6221 2557 1126 [email protected] Auto Energy Heavy Equipment Property Resources Rahmi MARINA +6221 2557 1128 [email protected] Banking Lucky ARIESANDI, CFA +6221 2557 1127 [email protected] Cement Construction Pharmaceutical Retail Adi N. WICAKSONO +6221 2557 1130 [email protected] Generalist Arwani PRANADJAYA +6221 2557 1129 [email protected] Technical analyst
Luz LORENZO Head of Research +63 2 849 8836 [email protected] Strategy Laura DY‐LIACCO +63 2 849 8840 [email protected] Utilities Conglomerates Telcos Lovell SARREAL +63 2 849 8841 [email protected] Consumer Media Cement Kenneth NERECINA +63 2 849 8839 [email protected] Conglomerates Property Ports/ Logistics Katherine TAN +63 2 849 8843 [email protected] Banks Construction
HONG KONG / CHINA Edward FUNG Head of Research +852 2268 0632 [email protected] Power Construction Ivan CHEUNG +852 2268 0634 [email protected] Property Industrial Ivan LI +852 2268 0641 [email protected] Banking & Finance Jacqueline KO +852 2268 0633 [email protected] Consumer Staples Andy POON +852 2268 0645 [email protected] Telecom & related services Samantha KWONG +852 2268 0640 [email protected] Consumer Discretionaries Alex YEUNG +852 2268 0636 [email protected] Industrial
INDIA Jigar SHAH Head of Research +91 22 6623 2601 [email protected] Oil & Gas Automobile Cement Anubhav GUPTA +91 22 6623 2605 [email protected] Metal & Mining Capital goods Property Haripreet BATRA +91226623 2606 [email protected] Software Media Ganesh RAM +91226623 2607 [email protected] Telecom Contractor
4
VIETNAM Michael Kokalari, CFA Head of Research +84 838 38 66 36 x 116 [email protected] Strategy Nguyen Thi Ngan Tuyen +84 838 38 66 36 x 163 [email protected] Conglomerates Confectionary and Beverage Oil and Gas Ngo Bich Van +84 838 38 66 36 x 171 [email protected] Banking Insurance Nguyen Quang Duy +84 838 38 66 36 x 162 [email protected] Industrial Property Trinh Thi Ngoc Diep +84 422 21 22 08 x 102 [email protected] Property & Construction Power Dang Thi Kim Thoa +84 838 38 66 36 x 164 [email protected] Consumer Services Hoang Nam Phu +84 838 38 66 36 x 171 [email protected] Technology & Telecom Transport Resources Truong Quang Binh +84 838 38 66 36 x 169 [email protected] Pharmaceutical Plantation & Fishery
THAILAND Stephen LOWY Head of Research + 662 658 6300 x 4760 [email protected] Watchara SATITPORNUMNUAY + 662 658 6300 x 4770 [email protected] Retail Bank Puttikul ACKARACHALANONTH Utilities
ECONOMICS Luz LORENZO Economist +63 2 849 8836 [email protected] Philippines Indonesia
REGIONAL ONG Seng Yeow +65 6432 1832 [email protected] Regional Products & Planning
Recommendation definitions Our recommendation is based on the following expected price performance within 12 months:
+15% and above: BUY ‐15% to +15%: HOLD ‐15% or worse: SELL
SATS Ltd
22 September 2011
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5
SATS Ltd
22 September 2011
Additional information on mentioned securities is available on request. Jurisdiction Specific Additional Disclaimers: THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO THE REPUBLIC OF KOREA, OR PROVIDED OR TRANSMITTED TO ANY KOREAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN THE REPUBLIC OF KOREA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO MALAYSIA OR PROVIDED OR TRANSMITTED TO ANY MALAYSIAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN MALAYSIA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply if the reader is receiving or accessing this report in or from other than Singapore. As of 22 September 2011, Kim Eng Research Pte. Ltd. and the covering analyst do not have any interest in SATS Ltd. Analyst Certification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. © 2011 Kim Eng Research Pte Ltd. All rights reserved. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Kim Eng Research Pte. Ltd. Kim Eng Research Pte. Ltd. accepts no liability whatsoever for the actions of third parties in this respect.
6
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