“Excluding [the disposals], our estimate of 5% growth in core net profit is in line with consensus estimate. We also estimate 13.2 cents in final dividend, assuming all divestment gains from sale of SATS HK and AAT will be distributed to shareholders,” say analysts K Ajith and Sophie Leong in a Wednesday report.
SINGAPORE (May 17): UOB Kay Hian is estimating SATS will post a 25% y-o-y increase in headline net profit when the airline gateway services and food solutions provider reports its FY17 earnings this Friday, versus the street’s implied estimate of 4.3% growth.
This is because the research house believes the street may not have factored in a combined $12 million of gains from the group’s disposal of its 4% stake in Air Airfreight Terminal (AAT), an air cargo handling terminal operator in Hong Kong, as well as its 51% stake in SATS HK, both of which were announced in 4Q.
