Phillip Securities Research in a Feb 8 research report says: "SATS announced headline profit decline of 25% in 3QFY12 due to margin pressures and loss on disposal of Daniels Group of $5.5 million.
"The lack of contribution from Daniels Group (3QFY11: $107 million) was offset by contributions from TFK Corp (3QFY12: $82 million) and organic growth from SATS’s core business. Underlying net profit from continuing operations disclosed by SATS declined by 8.6% y-o-y from $47.8 million to $43.7 million.
"In the quarter, SATS received cash from the sale of Daniels Group, which led to a cash build up. Hence, we explicitly modeled in special dividend per share (DPS) of 20 cents, on top of ordinary final DPS of 6cents that could be announced at the end of the year. Target price of $2.76. MAINTAIN BUY."
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