SINGAPORE – Sats is aiming for revenue growth of more than 50 per cent in the next five years, as demand rises for its airport support and ground-handling services.
The Singapore-listed ground handler and in-flight caterer has set a target of achieving over $8 billion in revenue by 2029, according to its Capital Markets Day presentation filed with the Singapore Exchange (SGX) on Nov 8.
It will also aim to achieve core profits of at least 20 per cent of revenue in the same period, and return on equity of 15 per cent or more.
Sats said that 75 per cent of the $8 billion revenue target will be contributed by its new gateway services arm, which provides passenger and aircraft handling and baggage, security and cargo-handling services in the Asia-Pacific, as well as support to the Changi and Seletar airports in Singapore.
The remaining 25 per cent of revenue will come from Sats’ food solutions arm, which caters food for airlines and other institutions.
The higher growth projections, if attained, could provide further support for Sats’ shares, which have risen by 40 per cent since the start of the year.
In October, Sats was also among the highest-performing stocks on the SGX. Its shares closed on Nov 8 at $3.85, down 3.3 per cent for the day.
Sats on Nov 7 announced a strong set of results for the second quarter of its financial year, which ends on March 31, 2025.
Profit for the quarter ended Sept 30 stood at $69.7 million, soaring 214 per cent from the same quarter a year ago.
This came on the back of a 14.1 per cent year-on-year increase in revenue to $1.5 billion for the same period.
For the first half of the 2025 financial
