SATS well-poised to ride on Singapore's eCommerce boom

Thanks to upcoming launch of SATS eCommerce AirHub.

With SATS eCommerce AirHub, a highly automated facility to handle mails and parcels scheduled to be complete early FY17, OCBC Investment Research believes it will provide growth catalyst.

Having signed a long-term agreement with SingPost, SingPost will shut down its own cargo handling facility at airport and utilize SATS’ new facility, contributing to the volume increase at the start.

"We believe SATS will be a potential beneficiary, if SingPost leverages on its relationship with Alibaba to drive eCommerce volume in the long-run," said the research house.

SATS' core PATMI grew 4.0% YoY to S$62.1m on the back of a 3.7% increase in revenue to S$438.5m.