This article, written by Jennifer Tan (left, Director, Research & Products, Equities & Fixed Income, at the Singapore Exchange), originally was published in SGX's kopi-C: the Company brew series. The article is republished here with permission.
Flamenco music, diverse cultures, and multi-ethnic cuisines are experiences that leave Alex Hungate spellbound. |
Hungate was appointed Preisdent and CEO of Asia's largest provider of food solutions and gateway services in January 2014. Before joining SATS, the Master of Arts graduate from Oxford University spent six years with HSBC Holdings plc. He held various positions - from Global Head of Personal Financial Services and Marketing to helming the bank's Singapore operations.
SATS |
|
Stock Price |
$4.38 |
Market Cap (S$M) |
4,695 |
52-Week High-Low |
$4.45/$3.47 |
Dividend Yield |
3.46% |
PE |
21.98 |
Source: SGX Stockfacts (data as of 21 Jul) |
Prior to that, the Master of Business Administration graduate from Harvard Business School spent 14 years in Reuters, taking on the roles of Managing Director of Asia and co-CEO of its America operations, as well as senior sales and marketing positions. He also helped found Reuters New Media in New York in the early days of the World Wide Web.
"Throughout my career, I've stayed in three continents, living longer outside of my birthplace than in it," said British-born Hungate. "That has enriched me as a person, made me more open, and taught me to value diversity."
"What I love about my job is working with a team of people from a wide range of cultures to grow our businesses across Asia. It is this coming together of different aspects of the world that is exciting for me."
♦ Bearing Fruit | |
SATS, which listed on Singapore Exchange in May 2000, has a market capitalisation of S$4.7 billion. It is a constituent stock of the benchmark Straits Times Index (STI), with a weighting of 1.12%. Singapore's state-owned investment firm Temasek Holdings Pte is a majority shareholder, owning more than 43% of the company. |
♦ Boost Operating Leverage |
|
"Over the last three years, our margins have gone from high, single-digit to almost 13%, while our ROE has improved correspondingly - from 11% a few years ago to 15% now," Hungate said. |
♦ Scale and Expertise | |
SATS' competitive edge in food solutions lies in its scale and know-how, Hungate said. That capability allows SATS to pursue a fast-expanding segment in the market - demand for high-quality, safe meals across emerging Asia.
"Asia is the biggest e-commerce market in the world, and is also the fastest-growing. Last year, the value of e-commerce in this region overtook the value of e-commerce in North America," he pointed out. |
♦ Passion to Delight | |
At SATS, it's all about service excellence - "the passion to delight" your customers, Hungate said.
Don't shy away from failures, as they play an important role in the education process. "The more failures you suffer - as long as you don't repeat the same mistakes - the better it is, as they will help you learn and adapt more quickly," he added. |
Year ended 31 March (S$ million) | 2015/16 | 2014/15 | 2013/14 | 2012/13 |
Total revenue | 1,698.2 | 1,753.2 | 1,786.7 | 1,819.0 |
Operating profit | 214.7 | 178.0 | 171.0 | 192.3 |
Profit attributable to owners of company | 220.6 | 195.7 | 180.4 | 184.8 |
Quarter ended 31 March (S$ million) | 4Q FY15/16 | 4Q FY14/15 | % Change |
Total revenue | 417.6 | 425.1 | -1.8 |
Operating profit | 49.7 | 44.7 | 11.2 |
Profit attributable to owners of company | 50.7 | 51.6 | -1.7 |
♦ Outlook |
|
SATS Ltd
SATS is Asia's leading provider of Gateway Services and Food Solutions. Its comprehensive Gateway Services encompass airfreight handling, passenger services, ramp handling, baggage handling, aviation security services, aircraft interior and exterior cleaning as well as cruise centre management. Its Food Solutions include airline catering, institutional and remote catering, aviation laundry as well as food distribution and logistics. SATS is present at 45 airports and 12 countries across Asia and the Middle East.
For the fourth quarter and full year ended 31 March 2016 financial results, click here.
The company website is: http://www.sats.com.sg.