Sats unlikely to resume dividend payout ratio of 70-80% but quantum will rise in tandem with profit

 

The counter jumps 9.1 per cent or S$0.34 to S$4.08

 

SHARES of in-flight caterer and ground handler Sats : S58 +7.22% advanced amid a steady surge in trading volumes in the morning trading session on Friday (Oct 25).

 

As at 9.33 am, the counter had jumped 9.1 per cent or S$0.34 to S$4.08, with some 8.1 million shares having changed hands. The last time its share price traded at such levels was in September 2022.

 

Sats was the most actively traded company in terms of value on Friday morning. Its shares were also heavily traded in terms of volume. By 10.45 am, some 14.1 million shares worth S$55.9 million were being transacted. The counter was up 6.7 per cent or S$0.25 at S$3.99 at that time.

 

No married deals were recorded in early trade, ShareInvestor data indicated.

 

In September, Sats said it will work with Chinese logistics company Sinotrans Air Freight (Sinoair) on ground and cargo-handling services across their respective networks.

 

The two companies are also said to be in talks for Sats to manage Sinoair&rsquo s new Hangzhou e-commerce hub, slated to be ready in 2026.

 

The tie-up will also extend across their respective networks and include setting up gateway hubs for Sinoair in Singapore, Malaysia, Indonesia, Saudi Arabia and Belgium.

 

Sats&rsquo collaboration with Sinoair came a month after its subsidiary, Worldwide Flight Services Holland, proposed to acquire Menzies World Cargo (Amsterdam), which is the general cargo handler at the Netherlands&rsquo main international airport.

 

The proposed acquisition will increase the warehouse capacity and cargo handling capabilities for Worldwide Flight Services Holland in one of Europe&rsquo s busiest air cargo locations, said Sats.

 

The additional warehouse will provide more capacity for Worldwide Flight Services Holland, which will enable it to capitalise on its strong local customer relations and service levels, and position itself for growth over the long term, added the company.