SMRT

[CityFarmer]

There is a good reason to avoid company with regulated business like SMRT

SMRT likely to cut dividend further: DBS Vickers

With SMRT's (S53.SG) earnings expected to deteriorate, a further dividend cut is likely, DBS Vickers says; it projects FY13's dividend at 5.5 cents/share, down from FY12's 7.45 cents.

"We expect cost challenges to result in a lackluster growth outlook coupled with above average valuations." The house cuts its target to $1.30 from $1.50 after weak fiscal-3Q13 results spur it to cut its FY13-14 earnings forecasts by 16%-25% to factor in further cost increases, particularly for staff and maintenance.

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