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SATS to expect fall in operating costs
The group's controllable cost fell by 2.7% in the past quarter.
Despite a difficult operating environment and a tight labour market, food and gateway solutions provider SATS exhibited good control as demonstrated by the 2.7% fall in its controllable cost.
According to UOB Kay Hian analyst K Ajith, there is scope for further productivity improvements as SATS continues to invest in technology and automation.
"That said, we have factored in higher utilities costs in the coming quarters due to the recent hike in water tax," Ajith said.
However, the analyst added, "Overall, we are raising our earnings estimates for FY18, as we have assumed a reduction in operating expenditures."
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