SMRT

[Gordanism]

I have been lamenting for years why SMRT is not following CD strategy of going aboard, since the local market is rather restricted and not sustainable, at least not until the latest development on the new bus financing framework and the prospect of new rail financing framework. I can now see that the management is taking a more proactive actions and is serious about its venture into overseas markets. Not too long ago the CEO even met up with Jokowi, President-elect of Indonesia, regarding the construction of monorail project in Jakarta. This is follow by a JV with Toshiba to market its PMSM system on the world market. As I said before, I have faith in the current CEO and management team. They are definitely doing a much better job than the old team.

It is too early to say if they are overpaying as it is just at the preliminary stage. I am sure they know their financials well, and the fact that they are trying may suggest that something good, in term of cash flows, is coming on their way. It could be debt, equity raising or even the anticipated offloading of assets back to LTA. But at this stage, no need to speculate, wait until they are successful in their bid.

It is interesting to see how this company learn from its past mistakes and transform itself and brings back those glory days. So far so good. Give them time, and faith in executing out these strategies.

Well said.