SBS Transit

[namaste]

How can you guys not see it..........population in singapore will rise to 6million......

This is the perfect opportunity for these "slow growers" stocks to rise capital and and grow..........

Stocks like the 3 telecos, smrt, sbs will benefit..........probably a lot more examples which companies will benefit from a population boom.........

Though like i always say, buy during recession........

I hold the same view that with an increased population there are many more examples of businesses that will benefit . . e.g.

Infrastructure (roads and MRT tunnels) - like OKP etc

F&B - Sakae Sushi, OCK, Japan Food, Tung Lok

Developers were the first ones to benefit starting in 2006/07. There were more boutique developers (either list or not) entering the market in the last few years.

However, as an investor, weather we benefit from this trend depends on the company we pick - which in turn depends on many other factors like the dynamics of the industry, is the company gaining or losing more share, current valuation of the company, portion of revenue/margin derived from Singapore market etc

[namaste]

Took a look at the recently announced FY 2010 Annual Results.

On the Annual basis (2010 vs 2009), its operating profit of $64.7m for 2010 was 4.0% or $2.5m higher than that of $62.2m in 2009.

Group revenue of $720.9m for 2010 increased by 3.4% or $23.8m from $697.1m in 2009 while group operating expenses of $656.2m increased by 3.4% or $21.3m from $634.9m in 2009.

However, on a sequential basis QoQ, the results is declining - quite a large decline in Q4 vs Q3 of roughly 20% in operating profit.

   

[Musicwhiz]

The Straits Times
Aug 12, 2011
SBS TRANSIT
Costs drive gains down 34% for Q2
Revenue up 3.2% on back of rail and bus ridership growth

By Christopher Tan

TRANSPORT operator SBS Transit posted a 34.2 per cent drop in second-quarter earnings to $9.8million as sharp cost increases negated the effects of more people taking public transport.

The ComfortDelGro-owned company reported a 3.2 per cent increase in revenue to $185.7 million as ridership growth more than offset a dip in average fares since distance-based charging took effect last year.

SBS' bus ridership rose 6.5 per cent while its rail ridership shot up by 16 per cent.

Despite that, profitability was crimped by a 6.8 per cent rise in operating expenses to $173.5 million. The biggest increases were fuel and electricity charges, which rose 23.7 per cent to $44.1 million for the three months ended June 30.

Costs related to TransitLink charges (for clearing ez-link fare transactions), vehicle road tax, production of bus advertisements, and bus and rail insurance were lumped under 'other operating expenses'. This category rose 14.8 per cent to $15 million.

The company incurred higher staff costs, as well as repair and maintenance costs. But depreciation and premises charges dipped.

Non-transit earnings were flat in the second quarter, but ended higher for the first six months.

For the first half, SBS' profits attributable to shareholders shrank by 30.8 per cent to $21.6million, despite a 4.3 per cent rise in revenue.

Earnings per share for the second quarter fell from 4.83 cents to 3.17 cents. The first-half figure fell from 10.16 cents to 7.01 cents.

While its margins were eroded, SBS remains financially robust. Its current assets stood at $105.1million as of end-June, down from $150.5 million as of Dec 31. But non-current assets stood at $710.6 million, up from $697.2million.

Accordingly, SBS' net asset value per share stood at 106 cents, up from 103 cents as of Dec 31.

The company's cash and equivalents shot up to $29.1 million for the first half, up from $3.9 million in the previous corresponding period, where the bulk of its investments in new buses was made.

Looking ahead, directors expect bus and rail ridership to continue rising, while non-transit revenues are likely to remain flat. But they also expect fuel, electricity and staff costs to rise too.

The bus business, they add, will bear the brunt of these cost rises.

They have declared an interim dividend of 3.1 cents, down from 4.5 cents previously.

Meanwhile, Vicom, a vehicle inspection subsidiary of ComfortDelGro, is faring better because car owners are now hanging on to their vehicles longer because of high COE prices.

It posted a 4.8 per cent rise in net profit to $5.9 million on the back of a 5.6 per cent increase in revenue to $22.3 million for the second quarter. For the first six months, earnings rose 10.5 per cent to $12 million.

Its directors have declared an interim dividend of 6.9 cents, up from 6.3 cents previously.

christan@sph.com.sg

[pianist]

good to hear about the dividends from both sbs and vicom...
btw: just wondering how to encash spare easi-link cards which i bought everytime i forgot to bring the transit card..

[pianist]

SINGAPORE: The government will have a tighter control over public transport operators, once the ongoing comprehensive review on buses is completed.

Observers also believe operators will receive more support from the government to help them boost their fleet size, and introduce capacity in a timely fashion.

With complaints over reliability, frequency and comfort levels about Singapore's bus network are getting more and more common, a review that has been going on since last August is looking to address these issues.

Ang Wei Neng, MP for Jurong GRC and a member of the Transport GPC, said: "With increased capacity, we can provide more services in this case. (We can also) help new services to improve their connectivity or increase capacity so that buses are less crowded."

Currently, operators are hampered by a manpower crunch.

SBS transit said it is facing a shortage of 180 bus captains. While SMRT said that apart from locals, there may be a need to hire foreigners from countries other than Malaysia or China.

As part of the review, the Land Transport Authority will soon reveal a programme that is expected to help operators grow their bus fleet and manpower in a sustainable manner.

Compared to the rail system, bus operators have other expenses apart from buying their own buses. They also pay Electronic Road Pricing (ERP) charges, road tax and the building costs of their own depots. Observers believe the programme will see the government offer help in these areas. The government may also look at ways to incentivise operators to boost capacity.

Analysts said authorities should set a clearer preferential policy for buses so that the operators will see the advantage to grow their fleets.

Associate Professor Lee Der-Horng, who is with the Department of Civil Engineering at the National University of Singapore, said: "The government should also provide a more friendly, more beneficial environment to our operators, by pushing the operators to provide timely service.

"However, we do not give buses priority when they travel along the road. If we have a very clear priority for buses, then the commuters will also see the benefit of taking the bus or public transport. At the the end of the day, the public transport operator will benefit."

Overall, analysts believe the regulator's role will be further strengthened following the review.

Assoc Prof Lee said: "Our regulator's role, we will further regulate, we will further monitor the performance, from our public transport operators, to ensure that they deliver what they are supposed to deliver.

"Not just to meet the minimum requirements, but a much higher standard, so that everyone in Singapore can benefit from a very good service quality from our public transport operators."

LTA said it will announce details of the programme in the coming months.

[pianist]

SBS Transit Ltd (the “Company”) wishes to announce that it has incorporated the
following wholly-owned subsidiary on 6 February 2012:
Name of company: SBS Transit DTL Pte Ltd
Place of incorporation: Singapore
Principal activities: Operation and maintenance of the Downtown Line
SBS Transit DTL Pte Ltd has been registered with an initial paid-up share capital
of S$100,000.00 comprising 100,000 ordinary shares.
The investment in the subsidiary is funded by internal resources and is not
expected to have any material impact on the consolidated net tangible assets or
earnings per share of the Company for the current financial year ending 31
December 2012.

[pianist]

WHILE it is commendable that the Government finally recognises the problems commuters face in taking public transport, I am puzzled why it is tapping public funds to aid the purchase and running costs of 550 new buses for SMRT and SBS Transit, which are public-listed ('Govt to co-fund bus fleet expansion'; last Saturday).


The Government has always defended its privatisation model and maintained that the companies must be privately operated; and that listing them publicly is the best way to ensure that our public transport system operates efficiently and effectively.


Furthermore, the Government has also mentioned that profits from the privatised entities would ensure that sufficient re-investments are made to upgrade and expand the system.


As public-listed firms, SMRT and SBS Transit have various ways to raise funds to buy buses. These options range from bond issues to the sale of new shares.


So there is no need for the Government to fund such purchases and their operating costs, especially when SMRT and SBS Transit have earned substantial profits over the years, which should allow them to make such investments.


By channelling public funds, is the Government tacitly agreeing to a not uncommon view that public transport should not have been public-listed?


If so, the Government should re- examine its current policy to focus the public transport system on serving citizens' needs over profit-driven aims that will satisfy shareholders.


Hoo Hoe Keat

[pianist]

SINGAPORE: Singapore government feedback portal REACH has received more than 600 views on Budget 2012 since 17 February, the day the Budget was announced.

REACH chairperson and Minister of State for Health Amy Khor said many contributors like the Budget.

Kicking off the second day of debate on the Budget speech, she added there are some concerns the government can address.

One area is that the Budget has set aside funds to acquire 550 buses, and keep them running for 10 years.

Dr Khor revealed there is significant resentment that public funds are being used to boost bus capacity even though doing so to improve service level is welcomed.

She noted the government had always maintained the privatisation model is the best way to ensure that the public transport system operates effectively and efficiently.

And given their size and credit standing, the publicly-listed bus companies can quite easily raise funds via bond or share issues to buy the buses.

However, Member of Parliament (MP) for Pasir Ris-Punggol Group Representation Constituency (GRC) Janil Puthucheary said Singapore should either fully nationalise or privatise its public transport services.

Dr Puthucheary wanted to know how the spending would ensure a return of investment that would benefit citizens and not shareholders.

Wondering if the move is "a creeping nationalisation" of Singapore's transport services, Dr Puthucheary said a hybrid transport model may not be the best way forward, as public transport companies have to operate under significant constraints while having to make profits.

He argued full nationalisation would benefit commuters, with lower fares and better availability of services, but may be expensive and inefficient

On the other hand, privatisation by deregulating the market would allow for true consumer choice and competition.

"We are neither properly privatised nor adequately nationalised. In the past, this hybrid model has been held up as an exemplar of what was possible with good governance," Dr Puthucheary said.

"It may represent the best of both worlds, but has recently been interpreted as the worst of both models. Can the House and the public be assured that this hybridisation continues to be the best way forward for Singapore?"

Dr Khor said many people cannot fathom the logic for the direct use of public funds to ramp up bus capacity.

Dr Khor said: "Moreover, it is argued that these companies have been making substantial profits over the years even though their bus business may be running operating losses."

Dr Khor stressed if the S$1.1 billion subsidy is inevitable, then the government must have strict oversight over these operators and impose conditions to ensure Singapore achieves the desired service level improvements and the extra money does not go toward boosting dividends or share prices.

And these conditions should be made known to the public.

Opposition MP Pritam Singh raised concerns that shareholders of publicly-listed bus operators SBS Transit and SMRT are benefiting from the Bus Services Enhancement Fund.

He said: "Many Singaporeans are asking why the shareholders of our publicly-listed bus operators are being extended this unusual generosity by the government?"

Mr Pritam Singh, who is an MP for Aljunied GRC, urged the government to "claw back" the $1.1 billion over a fixed period of time after consultation with SBS Transit and SMRT.

He also called for a step-by-step breakdown of how the money in the fund will be used.

Mr Pritam Singh said: "Taking into account inflation over the last two years, I hope this government gives the public a detailed breakdown of the operating cost and the salary component that was set aside for the Bus Services Enhancement Fund, in addition to all other components that may not have been publicly revealed so far.

"Too much of this dispensation of taxpayer dollar to these two profit-generating monopolies, quasi monopolies, I beg your pardon, is currently unknown to the public beyond the big figure and some transparency would be very helpful."

Turning to the move to increase CPF contributions for workers aged 50 to 65 years to encourage them to continue working, Dr Khor said feedback contributors have welcomed this announcement.

However, it can be argued that since people are becoming more educated and skilled, living longer and healthier, the CPF contribution rates should be similar for all workers, regardless of age and should be extended beyond 65 years old.

Otherwise, the signal would still be that older workers are less valued.

For businesses, Dr Khor said the criticisms to Budget 2012 have been sharper.

There are few objections towards the statement that Singapore needs to reduce its reliance on foreign workers and steer its economy toward higher productivity.

But, businesses feel growing productivity takes time and replacing foreign workers with more locals in a tight labour market will be extremely challenging in the short to medium term.

Hence, there are concerns the shortage of foreign labour may hurt small businesses and eventually increase costs for everyone.

Dr Khor said: "Besides the measures announced in Budget 2012 to incentivise companies to improve productivity, the government will need to work closely with the various industry sectors to change mindsets and more aggressively drive productivity initiatives.

"Employers will also have to make concerted effort to adapt their work processes to include more flexible work hours and better HR policies and pay structures to accommodate older workers and other untapped labour pools such as back-to-work women.

"Here, the government could take the lead by employing older workers and back- to-work women across all ministries and agencies."

Dr Khor, who is also mayor of the South West CDC, explained that from the point of view of depicting priorities, Budget 2012 indicated a stepped-up response to realities that have asserted themselves more and more forcefully.

She said the opposition would like to think that Budget 2012 is a reaction to the General Election last year.

But Dr Khor believed deeper forces are at work.

She said while Singapore has one of the highest percentage of millionaires in the world, the lower segments of the population find it difficult to pull themselves out of their difficulties.

Dr Khor said: "It will be foolish to jettison the dogma of globalisation and free markets because it has brought enormous benefits to Singapore.

"Millions have been uplifted from their poverty in many countries that have embraced market reforms and plugged their economies into the global trading system.

But, we need to address the inequalities which plague dense cities like Singapore."

And the government's decision to raise the social allocation even further in this year's Budget was a responsive move to emerging social trends although some opposition members would label it a populist move.

Dr Khor said this is not a course correction as suggested by the MP for Aljunied GRC Sylvia Lim, on Tuesday.

Dr Khor said it is the reinforcement of an existing policy and what Budget 2012 implied was a further loosening of the purse strings to help the most vulnerable segments of the population, with full awareness that the help they receive may be prolonged over many budget cycles.

Dr Khor said: "Indeed, Budget 2012 signals in my view, a fresh approach the government has taken in cognizance of these social realities.

"It is a fresh approach because the government has brought to bear substantially more funds than hitherto to try and decisively tackle the income gap. Hence, we have a permanent GST voucher scheme."

38 Members of Parliament are due to make their speeches on the Budget on Wednesday with Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam replying to MPs' concerns on Thursday.

[pianist]

SINGAPORE: Singapore government feedback portal REACH has received more than 600 views on Budget 2012 since 17 February, the day the Budget was announced.

REACH chairperson and Minister of State for Health Amy Khor said many contributors like the Budget.

Kicking off the second day of debate on the Budget speech, she added there are some concerns the government can address.

One area is that the Budget has set aside funds to acquire 550 buses, and keep them running for 10 years.

Dr Khor revealed there is significant resentment that public funds are being used to boost bus capacity even though doing so to improve service level is welcomed.

She noted the government had always maintained the privatisation model is the best way to ensure that the public transport system operates effectively and efficiently.

And given their size and credit standing, the publicly-listed bus companies can quite easily raise funds via bond or share issues to buy the buses.

However, Member of Parliament (MP) for Pasir Ris-Punggol Group Representation Constituency (GRC) Janil Puthucheary said Singapore should either fully nationalise or privatise its public transport services.

Dr Puthucheary wanted to know how the spending would ensure a return of investment that would benefit citizens and not shareholders.

Wondering if the move is "a creeping nationalisation" of Singapore's transport services, Dr Puthucheary said a hybrid transport model may not be the best way forward, as public transport companies have to operate under significant constraints while having to make profits.

He argued full nationalisation would benefit commuters, with lower fares and better availability of services, but may be expensive and inefficient

On the other hand, privatisation by deregulating the market would allow for true consumer choice and competition.

"We are neither properly privatised nor adequately nationalised. In the past, this hybrid model has been held up as an exemplar of what was possible with good governance," Dr Puthucheary said.

"It may represent the best of both worlds, but has recently been interpreted as the worst of both models. Can the House and the public be assured that this hybridisation continues to be the best way forward for Singapore?"

Dr Khor said many people cannot fathom the logic for the direct use of public funds to ramp up bus capacity.

Dr Khor said: "Moreover, it is argued that these companies have been making substantial profits over the years even though their bus business may be running operating losses."

Dr Khor stressed if the S$1.1 billion subsidy is inevitable, then the government must have strict oversight over these operators and impose conditions to ensure Singapore achieves the desired service level improvements and the extra money does not go toward boosting dividends or share prices.

And these conditions should be made known to the public.

Opposition MP Pritam Singh raised concerns that shareholders of publicly-listed bus operators SBS Transit and SMRT are benefiting from the Bus Services Enhancement Fund.

He said: "Many Singaporeans are asking why the shareholders of our publicly-listed bus operators are being extended this unusual generosity by the government?"

Mr Pritam Singh, who is an MP for Aljunied GRC, urged the government to "claw back" the $1.1 billion over a fixed period of time after consultation with SBS Transit and SMRT.

He also called for a step-by-step breakdown of how the money in the fund will be used.

Mr Pritam Singh said: "Taking into account inflation over the last two years, I hope this government gives the public a detailed breakdown of the operating cost and the salary component that was set aside for the Bus Services Enhancement Fund, in addition to all other components that may not have been publicly revealed so far.

"Too much of this dispensation of taxpayer dollar to these two profit-generating monopolies, quasi monopolies, I beg your pardon, is currently unknown to the public beyond the big figure and some transparency would be very helpful."

Turning to the move to increase CPF contributions for workers aged 50 to 65 years to encourage them to continue working, Dr Khor said feedback contributors have welcomed this announcement.

However, it can be argued that since people are becoming more educated and skilled, living longer and healthier, the CPF contribution rates should be similar for all workers, regardless of age and should be extended beyond 65 years old.

Otherwise, the signal would still be that older workers are less valued.

For businesses, Dr Khor said the criticisms to Budget 2012 have been sharper.

There are few objections towards the statement that Singapore needs to reduce its reliance on foreign workers and steer its economy toward higher productivity.

But, businesses feel growing productivity takes time and replacing foreign workers with more locals in a tight labour market will be extremely challenging in the short to medium term.

Hence, there are concerns the shortage of foreign labour may hurt small businesses and eventually increase costs for everyone.

Dr Khor said: "Besides the measures announced in Budget 2012 to incentivise companies to improve productivity, the government will need to work closely with the various industry sectors to change mindsets and more aggressively drive productivity initiatives.

"Employers will also have to make concerted effort to adapt their work processes to include more flexible work hours and better HR policies and pay structures to accommodate older workers and other untapped labour pools such as back-to-work women.

"Here, the government could take the lead by employing older workers and back- to-work women across all ministries and agencies."

Dr Khor, who is also mayor of the South West CDC, explained that from the point of view of depicting priorities, Budget 2012 indicated a stepped-up response to realities that have asserted themselves more and more forcefully.

She said the opposition would like to think that Budget 2012 is a reaction to the General Election last year.

But Dr Khor believed deeper forces are at work.

She said while Singapore has one of the highest percentage of millionaires in the world, the lower segments of the population find it difficult to pull themselves out of their difficulties.

Dr Khor said: "It will be foolish to jettison the dogma of globalisation and free markets because it has brought enormous benefits to Singapore.

"Millions have been uplifted from their poverty in many countries that have embraced market reforms and plugged their economies into the global trading system.

But, we need to address the inequalities which plague dense cities like Singapore."

And the government's decision to raise the social allocation even further in this year's Budget was a responsive move to emerging social trends although some opposition members would label it a populist move.

Dr Khor said this is not a course correction as suggested by the MP for Aljunied GRC Sylvia Lim, on Tuesday.

Dr Khor said it is the reinforcement of an existing policy and what Budget 2012 implied was a further loosening of the purse strings to help the most vulnerable segments of the population, with full awareness that the help they receive may be prolonged over many budget cycles.

Dr Khor said: "Indeed, Budget 2012 signals in my view, a fresh approach the government has taken in cognizance of these social realities.

"It is a fresh approach because the government has brought to bear substantially more funds than hitherto to try and decisively tackle the income gap. Hence, we have a permanent GST voucher scheme."

38 Members of Parliament are due to make their speeches on the Budget on Wednesday with Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam replying to MPs' concerns on Thursday.

[pianist]

SBS Transit on Monday said it has spent $433 million to purchase 1,000 new buses powered by Euro 5-compliant engines and equipped with wheelchair-friendly features.

Of the 1,000 new buses, 260 will be funded by the Government under the Bus Services Enhancement Programme (BSEP), while SBS Transit will fund the 740 buses under its growth and fleet replacement plans.

Since 2006, close to $1.29 billion has been spent to purchase 3,050 new buses.

The new acquisitions to be delivered from January 2013, comprise of 450 single-deck Mercedes Citaro buses and 550 double-deck Volvo B9TL Wright buses.