APT Satellite to milk 'significant' benefits from APSTAR 7

Management is eyeing another satellite launch.

According to Maybank Kim Eng, APT Satellite announced yesterday after the market close that its 1H13F results are expected to increase significantly, in revenue and operating profit terms.

The primary reason is due to a substantial increasing in revenue contributed from commencement of new satellite, APSTAR 7, in June 2012. The company expects to announce its 1H13F results in August.

Here's more:

Our company visit note issued on July 5th already revealed that the full-year contribution of APSTAR 7 will help in revenue contribution of full year.

Besides, the company is also conducting commercial feasibility studies to consider launching another satellite, which, if decided, will contribute revenue by end-2015. Management also revealed during our company visit that APT’s payout is under review from FY11A/12A’s 10.5%.

The latter two factors may also be near-term share price catalysts. APT reported 1H12A revenue and net profit of HKD402m and HKD105m, or growth of 8.1% and 1.5%. Interim dividend was flattish at 2 HK cents for both 1H11A and 1H12A. For 2H12A, the HoH growth sped up to 23.9% and 137% to HKD498m and HKD249m due to a full-period contribution of APSTAR 7 since June 2012.