SMRT

SMRT

-- Briefing

SMRT Corporation Ltd (SMRT) is Singapore’s premier multi-modal public transport service provider offering integrated transport services island-wide.

Established in 1987, SMRT has been listed on the Singapore Exchange since July 2000. In our core transport business, we are committed to offering a safe, reliable and friendly travel experience on our extensive network of trains, buses and taxis supported by retail amenities conveniently located within our stations. In our non-fare business, we aim to grow our diversified revenue streams from our taxi operations, rental of commercial spaces, advertising, operations and maintenance services, project management and engineering consultancy.

Fare:

Train,

Bus;

Non-Fare:

Taxi,

Advertising,

Rental of retail amentitis,

Project management

-- Owner

Temasek Holding owns ~54% shares, others are shared by many institute investors.

--- Business Mode

Monopoly in train, and Bus service, regulated by goverment.

Stable business, in line with Singapore economy and population.

Fare is the laregest part of revenue.

--- Revenue

Fare Revenue increase depends on two factors (ridership, and fare)

Train: (2007 to 2002)
Total number of passenger-trips (millions) 434.9 413.8 402.6 391.5 394.3 389.7
Growth in passenger-trip numbers (%) 5.1 2.8 2.8 (0.7) 1.2 0.6 = + 2.2% yearly

Bus:
Total number of passenger-trips (millions) 270.3 265.3 268.7 264.7 278.2 290.9
Growth in passenger-trip numbers (%) 1.9 (1.3) 1.5 (4.8) (4.4) 6.8 = -1.5%

Fare hike are regulated by Public transport commitee, allowed to apply for adjustment yearly.

On approval, fare hike will follow (CPI+WI)/2.

Generally, a 1~3cts hike will represent 1.7% increase in fare revenue.

E.g., 2007 fare revenue increases to 602M from 573M of 2006, ~30M increase

--- Cost

Wages and Salary occupy 35% of revenue, (slighlty decreases, 5 years ago 38%)

Tax:

--- Profit

--- Prediction

---Risk

--- Conclusion

Next Year Profit, may reach ~10cts, if without big suprise in Dubai project earning.

long-term growth: profit may grow 10%+,

Buy@ $1.2; P/E<15

sell @ $ 1.7; P/E=20

havn't finished ............ ..........