Elevator Pitch
Singapore-listed SATS Ltd. (SPASF) (SPASY) [SATS:SP], a leading provider of food solutions and gateway services in 13 countries across Asia Pacific and the Middle East, is facing near-term earnings headwinds due to weak cargo volumes and Jet Airways' flight suspension. Nevertheless, SATS' long-term growth prospects continue to be promising, with bolt-on acquisitions and central kitchens in China being key growth drivers for the future.
SATS trades at 23.4 times consensus forward FY2020 (YE March) P/E, which represents a premium to the stock's historical five-year average forward P/E of approximately 20 times. The stock