APT to launch new satellite in 2H

Revenue expected by end-2015.

According to Maybank Kim Eng, APT has obtained a permit from the International Telecommunication Union (ITU), a specialised agency of the United Nations, to launch a new satellite serving the Asia-Pacific region. 

Maybank noted that the company is conducting commercial feasibility studies and will make a decision on the launch sometime this year. With a lead time of 2.5 years, the new satellite will be able to contribute revenue by end-2015. APT has also purchased a launch service contract from China Great Wall Industry in Aug 2012 for HKD452m.

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APT has three direct substantial shareholders – APT Satellite (BVI), which owns 51.7% of the company, SingTel (5.5%) and CASIL (4.1%).

In turn, the BVI company is 57.1%-owned by China Aerospace Science and Tech Group, 28.6%-owned by SingTel and 14.3%-owned by Kwang Hua. The market has long speculated that SingTel, which effectively owns 20.3% of APT, may dispose of its stake.

A leading regional satellite services operator since the early 1990s. APT has three satellites in operation which provide transponder capacity leasing for satellite TV broadcasting (31% of group revenue) and telecom services (67%), and data centre operation.

It serves the Asia-Pacific region and has over 100
customers and coverage in 50 countries. Major shareholders include China Satcom, SingTel, Kwang Hua Development and China Great Wall Industry Corporation.

Stock re-rating began early 2013. APT made a positive profit alert in end-Jan 2013 and the market has since re-rated the stock. The share price has shot up 182.6% YTD vs a 9.6% drop for the Hang Seng Index.

For FY12A, the company recorded net profit growth of 26% YoY to HKD354m, spurred by revenue growth of 18.8% YoY. Gross margin also edged up 6.4ppts to 58.6% on better utilisation of APSTAR 7.