SMRT

[CityFarmer]

If they make too much, consumers will complain again...

If it is not paid by commuters, they might not be complaining.

[countonme]

depending very much on how much political risk they can take. Price increse + frequent breakdown = unhappy commuters.

There is a story on SMRT on the Oct, 21 issue of The Edge. The story is quite bullish on SMRT, base on the impending shifts to cost-plus and asset-light models.

The cost-plus model will reverse the bus operation's losses, and becoming profitable. The change may happen in near term, by 2016. Assuming margin of 10%, SMRT will be able to fetch 20-30 mil, base on FY2013's costs, instead of -30 mil losses. It means 3-4 cents improvement in EPS, base on existing share base of 1.5 billion shares.

In FY2013, overall EPS dropped to 5.5 cents, from a stable 10+ cents before. Will the 3-4 cents improvement bring SMRT back to its good old days?

Asset-light model will take more time. It will serve as a growth story for SMRT, together with more future MRT ridership, with more MRT lines and stations.

What your opinion on the story?

(not vested)

Will it result in higher fare for consumers? Or result in lower revenue for LTA, during the bidding exercise?

[Temperament]

depending very much on how much political risk they can take. Price increse + frequent breakdown = unhappy commuters.

There is a story on SMRT on the Oct, 21 issue of The Edge. The story is quite bullish on SMRT, base on the impending shifts to cost-plus and asset-light models.

The cost-plus model will reverse the bus operation's losses, and becoming profitable. The change may happen in near term, by 2016. Assuming margin of 10%, SMRT will be able to fetch 20-30 mil, base on FY2013's costs, instead of -30 mil losses. It means 3-4 cents improvement in EPS, base on existing share base of 1.5 billion shares.

In FY2013, overall EPS dropped to 5.5 cents, from a stable 10+ cents before. Will the 3-4 cents improvement bring SMRT back to its good old days?

Asset-light model will take more time. It will serve as a growth story for SMRT, together with more future MRT ridership, with more MRT lines and stations.

What your opinion on the story?

(not vested)

Will it result in higher fare for consumers? Or result in lower revenue for LTA, during the bidding exercise?

i still think after 2015/2016 GE, only then we can be sure.

[Temperament]

i may be wrong. SMRT Taxi has increased flag down fare liu. Is SMRT to increase in fare next?

[countonme]

Taxi is at the "luxury" segment of the transport system thus i think gov allows more free play. In any case, we cant expect any creative solutions from the them as the mgmt are all from the same grades-chasing edu system.

[NTL]

Taxi is at the "luxury" segment of the transport system thus i think gov allows more free play. In any case, we cant expect any creative solutions from the them as the mgmt are all from the same grades-chasing edu system.

Can you elaborate regarding what kind of creative solution you expecting?

[mkmk]

i may be wrong. SMRT Taxi has increased flag down fare liu. Is SMRT to increase in fare next?

They didn't increase for their normal fleet, rather, they introduce newer models & set a higher flag-down rate

Source: http://sg.news.yahoo.com/taxi-flagdown-r...36925.html

[Aldar]

Taxi is at the "luxury" segment of the transport system thus i think gov allows more free play. In any case, we cant expect any creative solutions from the them as the mgmt are all from the same grades-chasing edu system.

Can you elaborate regarding what kind of creative solution you expecting?

Does this count? Personally as long as I arrive at my destination within the shortest time and the safest way possible, the model does not matter.

http://news.insing.com/feature/new-taxis...d-7d2f3101

New taxis, higher taxi fares
22 Oct 2013

From 25 October, SMRT will start to gradually introduce 600 new Toyota Prius taxis on Singapore roads but at a higher flag-down rate of $3.80.

The Toyota Prius taxis will be offered by Prime Taxi and Premier Taxi with flag-down rates starting at $3.50 and $3.70 respectively.

SMRT also raised the flag down rates for their Hyundai Azera taxis by $0.20 to $3.80 starting 22 October.

According to SMRT’s press release, the Toyota Prius taxis, which are hybrid electric cars, will now account for about one-fifth of SMRT’s total fleet of more than 3,500 taxis.

SMRT is not alone in increasing prices.

ComfortDelgro, the largest taxi operator in Singapore, recently introduced Hyundai i40 taxis with an increased flag down rate of $3.70 from $3.20 compared to its predecessor, the Hyundai Sonata taxis, last month.

A few weeks ago, Trans-Cab also introduced a new fleet of Renault Latitude taxis at an increased price of $3.90, which is $0.30 higher than their Chevrolet Epica taxis which are of a similar size.

[Dividend Warrior]

Result is out. Not looking good.....

http://infopub.sgx.com/FileOpen/MediaRel...eID=262120

(Not vested)

[CityFarmer]

A brief report on the 2Q result...

SMRT’s 2Q net profit falls 57.1% to $14.3 mil

SMRT Corp said net profit in the second quarter ended Sept 30, 2013 (2QFY14) fell 57.1% to $14.3 million from a year ago due to higher staff and depreciation expenses, as well as repair and maintenance costs.

Group revenue rose 5.3% to $296.3 million in 2QFY14 on broad based revenue growth particularly in the non-fare business. Operating profit however declined 50.7% to $20 million as operating expenses increased by 15.8% to $285.8 million due mainly to higher staff, repair and maintenance (R&M) and depreciation costs.

Staff costs rose 27% to $118.5 million following the wage revision exercise in 4QFY13 and increased headcount for Trains and Buses. R&M rose 14.2% to $29.8 million mainly due to the increase in scheduled R&M because of higher operational loading for trains.

The board has declared an interim dividend of 1.00 cent per ordinary share similar to the final dividend for FY2013 to reward shareholders for their continued support.

The group ended the quarter with a cash balance of $173.3 million, higher by $58.7 million compared to the start of the quarter. It generated $115.2 million of cashflow from operations, offset against $50.4 million outflow in investing activities, and $6.0 million in financing cash outflow due to dividend payment.
http://www.theedgesingapore.com/the-dail...3-mil.html