Elevator Pitch
I maintain my "Neutral" rating on Singapore-listed leading food solutions and gateway services provider SATS Ltd. (OTCPK:SPASF) (OTC:SPASY) [SATS:SP]. The aviation industry is an obvious victim of the current coronavirus outbreak, and it accounted for approximately 83% of SATS' 9MFY2020 revenue. This implies more headwinds ahead, and significant earnings downside risks for SATS going forward. On the other hand, SATS' strong balance sheet and attractive dividend yield remain key investment merits for the stock, which explains my "Neutral" rating on the stock.
Please refer to my initiation article on