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SATS Ltd. (SPASY) Q1 2027 Earnings Call Prepared Remarks Transcript
The portfolio's return was 5.34% (net) for the reporting period. We initiated the following positions: Birkenstock Holding, Dormakaba, Hiab, Reply, SATS Ltd., and Scout24. We eliminated the following positions: Grifols Cl B ADR and Sopra Steria Group.
I maintain a Buy rating on SATS due to the positive outlook for its food and cargo businesses. Its cargo division is gaining share after successfully integrating its prior acquisition of Worldwide Flight Services. The new frozen food meals business is more profitable than its traditional airline catering operations, and this bodes well for the food solutions segment's overall margins for the future.
SATS, a Singapore-based aviation services provider, offers catering, cargo handling, and passenger services, benefiting from growing air travel demand without airline volatility or airport CapEx burdens. FY24 revenues surged to S$5.15 billion, driven by the World Freight Services acquisition, expanding SATS's presence to Europe, Brazil, South Africa, and the US. Risks include macroeconomic downturns and potential loss of concessions; low OTC trading volume suggests investing via the Singapore Stock Exchange for better liquidity.
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