SAT

I recently divested my investment in SAT at a price of $5.25/shr. Not that I think SAT is a  company that do not deserved holding on but it is more a case of valuation. The recent quarter and YTD 9 month earning are 5.8 cents/shr and 17.2 cents/shr corresponding. At a price of $5.25, this give a PE of about 22 if you take the anualized earnings. Although SAT has low or virtually no debt (debt/equity = 0.07) ,  is in a business area where entry of new competitors is not so easy and there may be potential growth oppotunities, I think the valuation has outrun the fundamentals of the company.

This in part I think is due to the inclusion of SAT into the STI last year.ETF funds who track the STI will automatically trigger buy into SAT leading to its higher valuation vis-a-vis earnings.

As such,  I decided to let go of my holdings at $5.25 but if a buying opportunity come up later, I will definitely consider again.

SATS 1QFY16/17

Revenue                                  $424.2m
(Food Solution                        $240m
 Gateway Services                  $184.9m
 Corporate                               $1.3m)

Operating Profit                      $54.5m
Share Of Associates               $12.2m
Profit Attributable to Shrs       $64.1m
Underlying Profit                    $55.5m
EPS                                         5.8cents
NAV                                        $1.4
Debt/Equity Ratio                    0.08

SAT 2QFY15/16

Revenue                                  $422.7m
Operating Profit                      $59.2m
Share Of Associates                $11.9m
PATMI                                    $59.7m
EPS                                          5.4 cents
NAV                                        $1.31
Debt/Equity Ratio                    0.07

SATS 1QFY15/16

Revenue                                  $416.9m
(Food Solution                        $241.1m
 Gateway Services                  $174.7m
 Corporate                               $1.1m)

Operating Profit                      $44.0m
Share Of Associates                $12.8m
PATMI                                    $49.6m
EPS                                          4.5 cents
NAV                                        $1.34
Debt/Equity Ratio                    0.07

SATS 4QFY2014

Revenue                                  $425m
(Food Solution                        $250.9m
 Gateway Services                  $173m
 Corporate                               $1.2m)

Operating Profit                      $44.7m
Share Of Associates                $13.1m
PATMI                                    $51.6m
EPS                                          4.7 cents
NAV                                        $1.3
Debt/Equity Ratio                    0.07
DPU                                         9 cents

With a Debt/Equity ratio of 0.07, SATs is one of the least leverage counter I have in my portfolio.It is generating a quarterly EPS higher than SIA Engineering at a 75% share price.

SATS 3QFY14/15

Revenue                                  $450.7m
(Food Solution                        $270.2m
 Gateway Services                  $179.4m
 Corporate                               $1.1m)

Operating Profit                      $51.1m
Share Of Associates                $13.8m
PATMI                                    $53.7m
EPS                                          4.8 cents
NAV                                        $1.25
Debt/Equity Ratio                    0.07

SAT 2QFY14/15

Revenue                                   = $442.2m
Operating Profit                       = $42.5m
PATMI                                     = $47.1m
Underlying Profit From Ops    = $47.1m
Underlying Net Margin            = 10.7%
PATMI Margin                         = 10.7%
Debt-to-Equity                          = 0.08
EPS                                           = 4.2 cents
DPU                                          = 5 cents
NAV                                         = $1.26
Cash & Cash Equiv                  = $338.4m
FCF                                           = $41.2m

Revenue decreased 2.2% yoy.Food Solutions revenue decreased by 4.7% yoy partly offset by Gate Services revenue which increased by 2.1%.PATMI decreased by 3.3% to $47.1m.

SATS 1Q FY14/15

Revenue                                    = $435.2m
Operating Profit                        = $39.7m
PATMI                                     = $43.3m
Underlying Profit From Ops     = $43.4m
Underlying Net Margin             = 10%
PATMI Margin                         = 9.9%
Debt-to-Equity                          = 0.08
EPS                                           = 3.9 cents
NAV                                         = $1.30
Cash & Cash Equiv                   = $395.1m
FCF                                            = $31.1m

Key costs are Staff Costs ($203.9m) and Raw Materials (85.3m) . Share of after tax profits from associates/JV dropped 16.8% arising from lower cargo volumes.

SAT 4QFY2014

Revenue                                    = $434.6m
Operating Profit                        = $41.7m
PATMI                                     = $42.6m
Underlying Profit From Ops     = $43.5m
Underlying Net Margin             = 10%
PATMI Margin                         = 9.8%
Debt-to-Equity                          = 0.08
EPS                                           = 3.8 cents
NAV                                         = $1.27
Cash & Cash Equiv                   = $339.6m

Key costs are Staff Costs ($188.8m) and Raw Materials (91.8m) . A mediocre quarter, in my opinion.Dividend was cut from 10cts to 8cts.

SAT 3QFY13/14

Revenue                                    = $465.5m
Operating Profit                        = $42.0m
PATMI                                     = $42.9m
Underlying Profit From Ops     = $42.9m
Underlying Net Margin             = 9.2%
PATMI Margin                         = 9.2%
Debt-to-Equity                          = 0.08
EPS                                           = 3.8 cents
NAV                                         = $1.22
Cash & Cash Equiv                   = $353.5m
FCF                                           = $78.9m

Key costs are Staff Costs ($204.1m) and Raw Materials (103.6m)

SATS 2QFY13/14

Revenue                                    = $452.1m
Operating Profit                        = $46.6m
PATMI                                     = $48.7m
Underlying Profit From Ops     = $48.7m
Underlying Net Margin             = 11%
PATMI Margin                         = 10.3%
Debt-to-Equity                          = 0.09
EPS                                           = 4.3 cents
NAV                                         = $1.24
Cash & Cash Equiv                   = $394.58m
FCF                                           = $60.1m

Key costs are Staff Costs ($197.5m) and Raw Materials (96.4m)

SATS 1QFY13/14

Revenue                                    = $434.5m
Operating Profit                        = $40.7m
PATMI                                     = $46.3m
Underlying Profit From Ops     = $47.9M
Underlying Net Margin             = 11%
PATMI Margin                         = 10.6%
Debt-to-Equity                          = 0.09
EPS                                           = 4.1 cents
NAV                                         = $1.31
Cash & Cash Equiv                   = $490.7m
FCF                                           = $59m

Key costs are Staff Costs ($198m) and Raw Materials (87.8m)

SAT Q3FY2012/2013

Results released on 30/1/2013

Revenue                                    = $470.6m
Operating Profit                        = $46.8m
PATMI                                     = $47m
Underlying Profit From Ops     = $57.2M
Underlying Net Margin             = 10%
Debt-to-Equity                          = 0.11
EPS                                           = 4.2 cents
NAV                                         = $1.21
Cash & Cash Equiv                   = $271.7m
FCF (1HFY2012/2013)            = $75m

Key costs are Staff Costs ($197m) and Raw Materials (104.7m)

SAT Q2FY12/13

Results released on 6/11/2012

Revenue                                    = $461.5m
Operating Profit                        = $52.1m
PATMI                                     = $50.3m
Underlying Profit From Ops     = $50.7M
Underlying Net Margin             = 11%
Debt-to-Equity                          = 0.12
EPS                                           = 4.5 cents
NAV                                         = $1.22
Cash & Cash Equiv                   = $325.1m
FCF (1HFY2012/2013)            = $78.1m

Key costs are Staff Costs ($195.1m) and Raw Materials (100.5m)

SAT Q1FY2012/2013

Results released on 26/7/2012

Revenue                                    = $437.9m
Operating Profit                         = $39.3m
PATMI                                     = $41.3m
Net Margin                                = 9.4%
Debt-to-Equity                          = 0.11
EPS                                           = 3.7 cents
NAV                                         = $1.39
Cash & Cash Equiv                    = $533.8m

Key costs are Staff Costs ($194.1m) and Raw Materials (90.3m)