Global Invacom set for turnaround after acquisition of Skyware

Currently loss-making Skyware would be profitable by 2016.

Don’t count out the satellite solutions provider just yet. Its recent performance may be dragged down due to a change in procurement procedures and the one-off acquisition of Skyware, but an increase in demand for the next year is looming.

Reports from RHB said a major of customer of Global Invacom would be launching two new satellites in 2016, boosting the company’s demand. Skyware is also expected to break even in the same year.

“GInva [would also be] able to supply both dishes and low noise blocks (LNBs) to its largest customer, and [with] its replacement cycle due, we expect GInva to outperform with an approximately 7x NPAT surge in FY16,” RHB said.

“After the completion of Skyware, GInva is allowed to start purchasing treasury shares again, which it did on 26 Aug 2015, buying back another 7m shares at an average price of SGD0.22,” RHB added.