SMRT   

SMRT

If you notice, SMRT are converting a lot of un-used space at their station to be retail shop space for rental.  So, the rental income will goes up and up.

 

PHILLIP SECURITIES RESEARCH
SMRT Corporation Ltd
20 November 2007

2Q Results. SMRT reported 2Q revenue of S$197.3m (+5.2% yoy) and net profit of S$39.5m (+25.3% yoy). The growth in revenue was due to higher ridership, improved taxi average hired-out fleet and strong contributions from rental and advertising.
In view of the excellent performance, SMRT announced an interim ordinary dividend of S$26.5m or 1.75 cents per share.


Performances by various businesses. SMRT registered growth in fare revenues from MRT (+5.7% yoy) and LRT (+4.4% yoy) operations while the buses operation posted minor growth in revenue (+0.7% yoy). The increase in average daily ridership resulted in the growth in revenues from the operations.
Moreover, for non-fare operations, there was double digit revenue growth from taxis (+12.3% yoy), rental (+12.8% yoy) and advertising (+24.6% yoy). The strong performances from taxis was due to the higher average hired-out rate at 90.2 percent in 2Q. Meanwhile, the increase in rental space and better yield caused the growth in rental. Furthermore, the increase in advertising on trains and stations resulted in better advertising sales.
However, revenue from engineering and other services declined (-11.7% yoy) due to the deconsolidation of Transit Link.

FY 08 Outlook. Management remains optimistic about its business in 2008. It expects growth in revenues from trains and bus operations as well as taxis, rental and advertising. Nevertheless, other operating income is likely to be lower in FY 08 as there were contributions from expired farecards in FY 07.

Maintain HOLD recommendation, target price raised from S$1.32 to S$1.70. SMRT has posted financial results within our expectations. Moreover, it continues to register increases in revenues and profits. This is a defensive stock for investors who would like to hold for payment of dividends. Based on our discounted cash flow model, the fair value is raised to S$1.80 to reflect the
progressive growth in cash flow from operations.

 

Today's tech play isnt ideal.

CCI though indicates oversold and reversed, ADX indicated strengthening of trend (downtrend) based on the couple of bear sessions.  I think I may be in for a ride.  :(

Based on my risk/reward of 3% ratio 1:1.5, my cut loss/exit price is established at 1.62SGD.

 

Somehow, I would agree with your 2nd paragraph. I read that their rental income has improved significantly and from HK MTR's experience, that should be the way to go for SMRT.

Dividends yield may not be attractive at current level, but it's improving. Since you vested at lower price, yield will still be good. I'm waiting to collect more at appropriate level.

 

Hi Farmer!

Yes I am still 80% vested since Sep 2005 @ 1.07SGD.  I reduced 20% holdings when the SMRT decided to vest in taxi and bus which I thought was hard to complete with the other operators and also when SBS took ownership of the NE line (no more monopoly). So now the 20% vested today at 1.68SGD is purely for tech play.

I dont think it will merge but rather selling and buying of those 'divisions' in which I mentioned.  After all its a rumor.  I did ask the SMRT IR but the usual hawkish answer came back.  Singapore is only a small island with so much train stops and other public transportations they can put in so I really dont expect its fundamentals to growth by leaps and bounds.  Its kinda matured already. Ridership will definately increase with more influx of foreign workers and tourists for the next decade.  If fares do not increase and operational cost does, the only revenue may be the increase in ridership. I will be a little concern.

I have been evaluating the 'what if' scenarios of both companies and based on those what if, an action plan is in placed.

Comfort Delgro, expanded overseas into China, UK and Indonesia.  I dont think SMRT can do that with its services.

Nonetheless, CONSISTENT dividend yield is what I am looking at for our dear SMRT.

 

Good evening!  KiLrOy

Are u vested still on this one? These rumours I've heard many times already, I think it's time for it to materialize.....hopefully in good form so as to support the current falling prices for both company.

How about loading in more at 100days low.

 

Here's the 'RUMORS' at ground level (kopi and taxi drivers talks). SMRT Taxi will be .... (I dont even know how to phase it) to Comfort Delgro. Whereas the SBS MRTransit line will be .... to SMRT.

 

Now is coming towards the year end, I guess it has got something to do with the M/A issue with ComfortDelgro which maybe announce soon. Maybe the outcome is negative for both company or the price paid is lower that the currrent market price. Any other reasons anyone?

 

Why SMRT been dropping? What is the best price to buy in?

 

This one now at 3 mths low...interested to collect anyone?

 

Did anyone punt/gamble/contra on SMRT stock price decline to 1.73 (4cts down intraday) during lunch?

 

Bollinger bands are tight indicating a possible large increase in price. Also, Acc/Dist and Chaikin looking good. 

 

1.52 SGD will be sweet to the ears of value investors *peet!*.

Inflation or deflation, the train MUST still move.  Remember that.

 

0351 GMT [Dow Jones] STOCK CALL: SMRT (S53.SG) may report 11% on-year rise in fiscal 2Q08 net profit to S$35 million on 3% rise in revenue, says Citigroup. Adds lower staff costs, taxes will help sustain profit growth in 2Q08. But notes 2H08 earnings may be weak given higher energy costs, absence of fare increases for rail business. 2Q08 results due Oct. 26. Keeps Sell call, S$1.52 target price. Stock off 0.6% at S$1.71. (FKH)

 

$1.52? Is this one really so bad?

 

so how it is going to impact this counter ?

btw is the any update on the merger between SMRT & ComfortDelgro ?

 

 

 

oophs....I mean a few stations from the Circle Line......sorry.....

 

A few stations will be handed over to SMRT by LTA at the end of the year, tho it will only be operational next year. Any great impact for SMRT?

 

Acc/Dist and Chaikin look bearish. 

 

Even when market down in Aug, the lowest SMRT goes is 1.59. I am waiting for it to drop to 1.69. Just hope they don't get the fare increase approval or else the price may goes up.

 

1.50 at this moment not possible...realised the strong support once hit 1.72. Wait lor!