SBS Transit

[pencilin]

Don't you love the pricing power of SBS.
With autonomous bus getting in action, SBS's margin should greatly improve (when they retrench all the bus drivers)

Anyone vested?

Bus, train fares could go up by 7% as Public Transport Council begins fare review exercise
Link - https://www.straitstimes.com/singapore/t...are-review

[opmi]

Don't you love the pricing power of SBS.
With autonomous bus getting in action, SBS's margin should greatly improve (when they retrench all the bus drivers)

Anyone vested?

Bus, train fares could go up by 7% as Public Transport Council begins fare review exercise
Link - https://www.straitstimes.com/singapore/t...are-review

SBS dont have pricing power leh. 
The pricing power lies with PTC, which basically see what Govt wants and follow it...

Khaw already said that he hoped to see PTC follow fully the recommended fare reviews annually until 2022..

Autonomous bus = better margin? Sounds like Uber.  hahaha

Autonomous buses are bad for SBS/SMRT. Coz SBS/SMRT make money by providing the drivers. The buses are owned by LTA.
If everything is autonomous, no need drivers already.

[dzwm87]

It will take a while before autonomous buses are rolled out nationwide. So far, pilot testing has been in "predictable" traffic area - campus, sentosa, etc. You add in peak traffic and the whole ball game changes.

Same thing for independent on-demand buses. There is a reason why public transport is deemed as a public good.

[brattzz]

until toyota sells autonomous buses... long way to go sir.... human drivers are needed for a long long time... :O

[pencilin]

until toyota sells autonomous buses... long way to go sir.... human drivers are needed for a long long time... :O

Guys please read this.
Bro, time is your friend. Long time is fine, anyway you are a value investor right?


https://www.dezeen.com/2019/03/06/volvo-...singapore/



Volvo unveils "world's first" autonomous electric bus in Singapore
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Augusta Pownall | 6 March 2019 3 comments
Volvo has revealed a pioneering, driverless electric bus that is set to undergo testing, before being put into operation on Singapore's roads.

The 12-metre long bus, AB 7900, has a capacity of 93 people, and is able to carry 57 standing passengers as well as those seated.
Unlike regular buses used in public transport networks worldwide, this electric vehicle produces zero emissions and uses 80 per cent less energy than a diesel bus of the equivalent size.
The bus produces zero emissions and uses 80 per cent less energy
"We are very proud to be showcasing our electric bus featuring autonomous driving technology. It represents a key milestone for the industry and is an important step towards our vision for a cleaner, safer and smarter city," said Volvo Buses president Håkan Agnevall.

Designed in collaboration with Singaporean university Nanyang Technological University (NTU), the driverless bus uses sensors and navigation controls that are operated by artificial intelligence.
"The journey towards full autonomy is undoubtedly a complex one, and our valued partnership with the NTU and the Singapore Land Transport Authority are critical in realising this vision, as is our commitment to applying a safety-first approach," said Agnevall.
The bus uses sensors and navigation controls operated by artificial intelligence
The operating system is backed up by cybersecurity measures to ensure its safety on public streets.
The sensors and navigation controls include light detection and ranging sensors (LIDAR), stereo-vision cameras that capture imagery in 3D as well as a global navigation satellite system.

Related story
Muji designs "friendly" autonomous shuttle bus for Finland

This satellite system is similar to a regular GPS but uses multiple data sources to give pin-point accuracy to the nearest centimetre.
It runs in parallel with an "inertial management unit" which measures the bus' speed and movement. This will improve the bus' navigation when going over uneven terrain and around sharp bends, ensuring a smooth ride for passengers.
They include light detection and ranging sensors (LIDAR), plus stereo-vision cameras that capture imagery in 3D
Two buses are currently undergoing tests in the city state, one on the NTU campus and the other at a bus depot operated by the Singaporean public transport operator [url=https://www.smrt.com.sg/]SMRT. They will play a key role in determining the roadworthiness of the vehicles.
"The world's first 12-metre autonomous bus will shape the future of public transportation by promoting a transport system that is safe, efficient, reliable and comfortable for all commuters," said NTU president Subra Suresh.
"It will soon be tested on NTU's smart campus, which has been a living testbed for autonomous vehicle technologies since 2012," he continued.
Two buses are currently undergoing tests in Singapore
Data from trials will be used to improve the technology before the buses are put into operation as public transport.
Volvo branched out from the transport industry recently to collaborate with Australian researchers on Living Seawall, a set of 50 tiles installed in Sydney's harbour. Made from concrete and recycled plastic, the irregular-shaped tiles attract sea life that filter the water.

[kelvesy]

Latest CIMB report on SBS Transit is a worthy read.

Q3 would look better than Q2 -- for both rail and bus. Despite some JSS tapering off, 2H would look better than 1H due to its inherent operating leverage from its business model. 

The focus for me is on the free cash flow because LTA is paying SBS an availability fee to lease their buses. The amount is equivalent to its depreciation value every year. 

source: https://www.sbstransit.com.sg/ridership

[weijian]

Similar to VICOM, SBS Transit didn't pay out an interim dividend. I guess after you taken a 109mil subsidy from the Gov, you shouldn't be acting like a Capitalist (in a sense)

Full Year 2020 Financial Statements and Dividend Announcement

The ongoing COVID-19 pandemic continues to disrupt the normal operations of the economy. Although Singapore has made good progress to move into Phase 3 of the Nation’s reopening from 28 December 2020 with further resumption of activities, Phase 3 could last a year or more, till global COVID-19 situation is under control or effective vaccines become widely
available. Emergence of new strains of COVID-19 virus and further mutations that may be more infectious could also potentially change the course of the outbreak. Most economists are projecting a long and uneven recovery which will hinge on the effectiveness of the vaccine rollout.

Revenue from Public Transport Services is expected to be higher compared to last year in the absence of any further circuit breaker. Rail ridership recovery is expected to be gradual in Phase 3, as working from home continues to be the default mode. Revenue from Other Commercial Services is expected to improve with higher ridership. The Group continues to step up the frequency of cleaning of its premises, buses and trains in view of the ongoing COVID-19 pandemic. Repairs and maintenance costs are expected to increase with the ageing bus and train fleets and continued investments in predictive
maintenance capabilities to enhance service reliability. The adverse impact of COVID-19 on the Group’s financial performance will be partly cushioned by grants from already announced Government Support Schemes, primarily the Jobs Support Scheme which will continue partially into 2021. Any further Government Support Schemes are uncertain at this moment.

Despite the ongoing vaccination efforts and gradual resumption of the economy, the global COVID-19 situation remains fluid. There is uncertainty over the easing of health and safety measures and the pace of a global vaccine rollout, hence the Group continues to maintain a cautious outlook for the rest of the financial year.

https://links.sgx.com/FileOpen/SBST_Full...eID=647805

[r0n]

Similar to VICOM, SBS Transit didn't pay out an interim dividend. I guess after you taken a 109mil subsidy from the Gov, you shouldn't be acting like a Capitalist (in a sense)

Full Year 2020 Financial Statements and Dividend Announcement

The ongoing COVID-19 pandemic continues to disrupt the normal operations of the economy. Although Singapore has made good progress to move into Phase 3 of the Nation’s reopening from 28 December 2020 with further resumption of activities, Phase 3 could last a year or more, till global COVID-19 situation is under control or effective vaccines become widely
available. Emergence of new strains of COVID-19 virus and further mutations that may be more infectious could also potentially change the course of the outbreak. Most economists are projecting a long and uneven recovery which will hinge on the effectiveness of the vaccine rollout.

Revenue from Public Transport Services is expected to be higher compared to last year in the absence of any further circuit breaker. Rail ridership recovery is expected to be gradual in Phase 3, as working from home continues to be the default mode. Revenue from Other Commercial Services is expected to improve with higher ridership. The Group continues to step up the frequency of cleaning of its premises, buses and trains in view of the ongoing COVID-19 pandemic. Repairs and maintenance costs are expected to increase with the ageing bus and train fleets and continued investments in predictive
maintenance capabilities to enhance service reliability. The adverse impact of COVID-19 on the Group’s financial performance will be partly cushioned by grants from already announced Government Support Schemes, primarily the Jobs Support Scheme which will continue partially into 2021. Any further Government Support Schemes are uncertain at this moment.

Despite the ongoing vaccination efforts and gradual resumption of the economy, the global COVID-19 situation remains fluid. There is uncertainty over the easing of health and safety measures and the pace of a global vaccine rollout, hence the Group continues to maintain a cautious outlook for the rest of the financial year.

https://links.sgx.com/FileOpen/SBST_Full...eID=647805

The reason why they didn't pay an interim dividend was really simple - ComfortDelGro wasn't paying an interim dividend so there was no need for them to fund it.

However, they would have to pay a final dividend to follow their dividend policy, and not paying an interim dividend would make their final dividend seem bigger on comparison against last year.

[brattzz]

public plus private interests, company has taken 109m subsidy, without which, it would have made a lose of 30m, why is it still considered a profit? :O company should pay back some of the 109m subsidy to gov instead....

[weijian]

public plus private interests, company has taken 109m subsidy, without which, it would have made a lose of 30m, why is it still considered a profit? :O company should pay back some of the 109m subsidy to gov instead....

CDG owns 75% of SBS Transit. We know CDG has been doing a tremendous job doing National Service for the cabbies.
https://www.valuebuddies.com/thread-445-...#pid160362

CDG probably need some cash at group level to do National Service, which explains a final dividend payout by SBS Transit. SBS Transit OPMIs are just "accidental" beneficiaries and so let's just give it to them.