Hot stock: Sats surges to 2-year high amid heavy trading

SHARES of in-flight caterer and ground handler Sats advanced amid a steady surge in trading volumes in the morning trading session on Friday (Oct 25).

As at 9.33 am, the counter had jumped 9.1 per cent or S$0.34 to S$4.08, with some 8.1 million shares having changed hands. The last time its share price traded at such levels was in September 2022.

Sats was the most actively traded company in terms of value on Friday morning. Its shares were also heavily traded in terms of volume. By 10.45 am, some 14.1 million shares worth S$55.9 million had been transacted. The counter was then up 6.7 per cent or S$0.25 at S$3.99.

No married deals were recorded in early trade, ShareInvestor data indicated.

In September, Sats said it would work with Chinese logistics company Sinotrans Air Freight (Sinoair) on ground and cargo-handling services across their respective networks.

The two companies are also said to be in talks for Sats to manage Sinoair’s new Hangzhou e-commerce hub, slated to be ready in 2026.

The tie-up will also extend across their respective networks and include setting up gateway hubs for Sinoair in Singapore, Malaysia, Indonesia, Saudi Arabia and Belgium.

Sats’ collaboration with Sinoair came a month after its subsidiary, Worldwide Flight Services Holland, proposed to acquire Menzies World Cargo (Amsterdam), the general cargo handler at the Netherlands’ main international airport.

The proposed acquisition will raise the warehouse capacity and cargo-handling capabilities for Worldwide Flight Services Holland in one of Europe’s busiest air-cargo locations, said Sats.

The additional warehouse will provide more capacity for Worldwide Flight Services Holland, which will enable it to capitalise on its strong local customer relations and service levels, and position itself for growth over the long term, added the company.

Sats will release its second-half financial results on Nov 7, after market trading hours.