SATS

According to DBS, two Covid-19 vaccines could be available by the first quarter of next year.

Singapore’s aviation sector still has dark clouds looming over it, but the race for a Covid-19 vaccine may benefit some companies.

The brokerage’s harsh forecast is based on the bleak guidance provided by the International Air Transport Association.

This is especially the case if discretionary travel is allowed from China and Indonesia, the brokerage says.

In a business update on Aug 24, SATS reported that its non-aviation revenue surged 73.3% y-o-y to $96.9 million in 1QFY2021 ended June 30.

On Aug 24, SATS recorded a net loss of $43 million on the back of lower revenue of $209 million as airlines saw a plunge in air travel.

SATS says the loss was “in line” with the guidance it posted on July 29 during its 4Q and FY19/20 results.

US asset manager BlackRock is no longer a substantial shareholder of SATS, the provider ground handling services and catering to airlines. And in the wake of the sale, its chairman, CEO and directors have been scooping up shares of the company.

Singapore-listed companies have charted a new record in governance and transparency in 2020, with SATS and CaptiaLand Commercial Trust topping the annual Singapore Governance and Transparency Index.

Analysts from DBS Group Research and OCBC Investment Research have recommended investors to “hold” on to the stock, while analysts from PhillipCapital and CGS-CIMB feel it’s time to “sell” or “reduce” their positions.