SBS Transit

[Nick]

http://www.sbstransit.com.sg/download/fy2015.pdf

4Q results are out though not much information can be gleaned from it about the shift towards to GCM. We will have to wait for the tender results for the 3rd contract to be out before we can get an idea of how much 'revenue' lies in the 20% share of the bus industry. The EBIT margin on an asset heavy model (which includes non-fare income) is merely 2.7%. No news on the upcoming disposal of bus assets to LTA (if any).

Trains reported a quarterly EBIT loss of $2.7 million in 4Q 2015 thus dragging its FY EBIT to $3.2 million profit . I expect this to improve once DTL gains sufficient ridership - aided by the opening of DTL2.

Share price has been resilient despite market weakness. Dividend yield is 1.3%. Ideally, this will improve from FY 2017 onward.

(Vested)

[CityFarmer]

Staff expenses will continue to go up, with market competition...

SBS Transit to raise pay of bus captains
03 Jun 2016 09:00
By Zhaki Abdullah

SBS Transit, the largest bus operator here, yesterday said it would raise the monthly starting pay for its bus captains to $1,950, an increase of more than 9 per cent from the current $1,775.

Almost 10,000 SBS Transit employees, including 6,500 bus captains, will benefit from the new salary package, which comes after several months of negotiations between the bus operator and the National Transport Workers' Union (NTWU).
...
Source: Straits Times

[CityFarmer]

The third and the final tender before LTA concludes on the pricing for existing routes with incumbents...

LTA calls for tenders for third bus package in Seletar
07 Jun 2016 15:15
By Mindy Tan

THE Land Transport Authority (LTA) has put up the third bus package in Seletar for tender.

The Seletar bus package comprises 24 existing services and two new services which will be announced closer to the commencement date. The bus services will be operated from Ang Mo Kio, Yio Chu Kang and Yishun Bus Interchanges, and will be supported by the new Seletar Bus Depot located off Yio Chu Kang Road, which is scheduled to be completed by the third quarter of 2017.

It consists of about 420 buses, growing to about 500 buses in 2023, in tandem with new developments and projected growth in ridership.
...
Source: Business Times Breaking News

[weijian]

SBS TRANSIT FINALISES NEGOTIATED CONTRACT WITH THE LAND TRANSPORT AUTHORITY

11 August 2016 – On 1 September 2016, SBS Transit will transit to the new Bus Contracting Model (BCM) after the expiry of its Bus Service Operating Licence the day earlier. In the Negotiated Contract (NC) with the Land Transport Authority (LTA), SBS Transit will operate 196 bus routes under eight public bus packages. The bus packages will have an average contract duration of seven years. The Bukit Merah package will run for two years while the seven other packages will have contract periods that range from five to 10 years.

http://infopub.sgx.com/FileOpen/PRESS%20...eID=416820

[mkmk]

Quote from VICOM post:

I guess continuing a payout of 33-34cents/share is contingent to parent CDG's needs, than anything else. This cash generating ability has been there for a long time and the only fact that has changed, is CDG's need for cash.

There are some thoughts about privatization of VICOM by CDG. It may take ~150-200mil to make a robust bid from CDG to take over the remaining ~33% stake it doesn't own - While it was pausible a few years ago, but i thought the chances are remote now, especially with the 600mil acquisition of LCR (300mil of cash). Also, CDG seems to signal that it prefers to allow the golden goose to continues to lay eggs, than bring it home from the market - with this record announcement of dividends.

Can milk the other cow on the CDG farm.

http://www.businesstimes.com.sg/companies-markets/sbs-transit-profit-grows-50-to-47m
SBS Transit profit grows 50% to $47m
Directors expect transport revenue to continue growing this year and are recommending a final dividend of 3.95 cents - up from 2.7 cents previously.

[opmi]

Quote from VICOM post:

I guess continuing a payout of 33-34cents/share is contingent to parent CDG's needs, than anything else. This cash generating ability has been there for a long time and the only fact that has changed, is CDG's need for cash.

There are some thoughts about privatization of VICOM by CDG. It may take ~150-200mil to make a robust bid from CDG to take over the remaining ~33% stake it doesn't own - While it was pausible a few years ago, but i thought the chances are remote now, especially with the 600mil acquisition of LCR (300mil of cash). Also, CDG seems to signal that it prefers to allow the golden goose to continues to lay eggs, than bring it home from the market - with this record announcement of dividends.

Can milk the other cow on the CDG farm.

http://www.businesstimes.com.sg/companies-markets/sbs-transit-profit-grows-50-to-47m
SBS Transit profit grows 50% to $47m
Directors expect transport revenue to continue growing this year and are recommending a final dividend of 3.95 cents - up from 2.7 cents previously.

So little.......

And LTA already said DTL ridership 470k. SBST still uses AVERAGE 270k for 2017. Sibei Jialat.

https://www.sbstransit.com.sg/download/S...ar2017.pdf

https://www.channelnewsasia.com/news/sin...ng-9948264

[mkmk]

And LTA already said DTL ridership 470k. SBST still uses AVERAGE 270k for 2017. Sibei Jialat.

https://www.sbstransit.com.sg/download/S...ar2017.pdf

https://www.channelnewsasia.com/news/sin...ng-9948264

It's actually 470k average ridership after DTL3 opened in Oct-17, as shown in LTA's Press release.

To be fair, based on the same graph, DTL's 2017 average ridership should be more than 270k.

[opmi]

Blog post on SBST. Seldom see SBST post, usually all CDG ones.

http://investmentmoats.com/stock-market-...generator/

[mkmk]

https://www.todayonline.com/singapore/lt...sets-april
LTA to take over SBS Transit's rail operating assets from April 

From April 1, the Land Transport Authority will take over ownership of the trains, signaling systems and other operating assets of North East Line and Sengkang and Punggol Light Rail Transit from SBS Transit.

This follows discussions that have taken place since 2011, and takes place about 1.5 years after SMRT's sale of its operating assets for the North South and East West lines, as well as the Bukit Panjang LRT to the Land Transport Authority.

This means the entire rail network here will be under the New Rail Financing Framework (NRFF), where the government owns the rail operating assets and relieves operators from heavy capital expenditure and fare revenue risk.

The LTA will acquire SBS Transit's rail operating assets at net book value, which is estimated to be about S$28.8 million (S$30.8 million with Goods and Services Tax) as at March 31, 2018.

The authority will make 60 per cent of the payment on April 1, and the remainder over the next two years.

SBS Transit will pay an undisclosed licence charge annually for the right to operate and earn revenues from the rail lines.

The framework ensures timely procurement of additional trains and other assets to improve reliability and keep pace with ridership growth, said LTA.

The industry becomes more contestable through shorter licence periods of 15 years (with a possible five-year extension), down from 30 to 40 years under the previous framework.

The NRFF was first implemented for the Downtown Line, also operated by SBS Transit, in 2011.

[Kelvin]

https://sg.finance.yahoo.com/news/sbs-tr...58793.html

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