Shares of SATS Ltd have performed strongly during the past few years. Investors who bought shares of SATS five years ago and held them till today would have more than doubled their investment, when dividends are included. Recently, SATS has fallen by more than 10% from its all time high of $5.39 back in January. This correction seems to be a good opportunity to invest in a business with good growth potential.
Source: SATS Annual Report 2016
SATS' business can be split into two segments - Food Solutions and Gateway Services. Food solutions services includes airline catering, food distribution and logistics. The Gateway Services segment includes handling of baggage and cargo, airport security, aircraft cleaning and managing the Marina Bay Cruise Centre.
Upcoming Terminal 4 to increase number of flights
Changi Airport's Terminal 4 is expected to be completed by mid 2017, and has the capacity to handle an additional 16 million passengers yearly,...