• 3Q26/9M26 PATMI exceeded our expectations, at 34%/94% of FY26e forecast. Cargo volumes grew 7.3% YoY in 3Q26 to 2.6mn tonnes due to strong growth in Europe and APAC. Commencement of new contract wins (China cargo, Saudia cargo, Azul, Allegiant Air) together with further leasing and capex initiatives underpin growth. However, lower cargo volumes in the US ground handling business have rendered some stations economically unviable, and renegotiations of pricing and the establishment of volume thresholds are underway.
• Revenue/PATMI grew 8%/20.4% YoY to S$1.6bn/S$84.7mn in 3Q26, driven by a 7.3% cargo volume growth to 2.6mn tonnes. Europe and APAC routes offset a 7% decline in the Americas (up 3% LFL after normalising for contractual changes).
• We raise FY26e PATMI by 13%. Cargo rates have been incrementally raised amid tightening cargo capacity in the Middle East, and cargo volumes have been increased for FY26e. In the near term, as new facilities such as the expanded Pathum Thani kitchen and Noida airport cargo facility ramp up, we expect both facilities to become profitable in the coming quarters. We upgrade to BUY rating with a higher DCF target price of S$4.44 (Prev: S$3.84) as we raised FY26/27 earnings. SATS trades at a 19.5x FY26e P/E.

Overview The company is committed to building a clean energy-centric business portfolio, spanning four key sectors: Energy Development, Energy Equipment, Energy Services, and Energy Applications. In Energy Development, the company focuses on in-depth localized clean energy resource development and management. This empowers regional energy structure optimization and delivers efficient, secure energy asset management services. In Energy Equipment, adhering to stringent intelligent manufacturing quality control standards and a green supply chain management system, the company provides smarter, more reliable, and cost-effective...
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Updates Net Profit Attributable to Shareholders Surpassed 20 billion Yuan Mark for First Time CMOC Group has released its 2025 performance forecast. The company expects to achieve a net profit attributable to shareholders of the parent company in the range of 20.0 billion to 20.8 billion yuan (RMB, same below) for the full year, representing a year-on-year increase of 47.80% to 53.71%. After deducting non-recurring gains and losses, the net profit attributable to shareholders is projected to be between 20.4...
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