SATS' share price has been slowly creeping up.
It further creeped up when Changi Airport Group announced the rebates and reductions of the aeronautical fees at Changi. This is targeted at providing support for airlines and ground handlers, to boost Changi's competitiveness as an air hub.
This comes as air traffic through Singapore is still showing softness in the data. Changi registered a 0.9% drop in passenger during Q1 as compared to a year ago.
The introduction, and extension, of the reduced fees benefits SATS tremendously. Though the impact of the cost savings from these incentives would not be reflected in its next announcement, shareholders are expecting the results to show in the coming quarters.
This, together with "productivity push" (which unfortunately has not been elaborated further), should see an improved bottom line for SATS.
Healthy balance sheet
I'm still keeping my stake at SATS. This hidden dragon may soon be awaken :)
No comments:
Post a Comment