SATS’s pure cargo handling associates in Hong Kong, India, Taiwan and Indonesia have also benefited from the vaccine shipments, says Lim Siew Khee, Head of Research at CGS-CIMB. She notes that these gateway associates have turned a profit of $7.9 million 3QFY2021 as compared to a loss of $1.7 million in 2QFY2021.
Better known as the firm behind the trays of inflight food most travellers encounter in happier times, food and gateway solutions firm SATS has undoubtedly been hard hit by the Covid-19 pandemic. But with vaccines now quickly on their way, analysts anticipate better performance in its cargo business as it wings the “jabs” across the region.
“Management shared that SATS has handled inbound and transhipment of Covid-19 vaccine shipments across Asia. With the rollout of vaccines, we believe that SATS is poised to benefit from vaccine shipment as a Certified pharma handler and a gradual recovery of travel demand ahead,” remarks OCBC equity researcher Chu Peng in a Feb 11 broker’s report.
