SMRT

[CityFarmer]

The free ride continue...

Free travel scheme on MRT extended

SINGAPORE — Commuters who tap out at 18 designated MRT stations before 7.45am on weekdays can continue to enjoy free travel under the Free Pre-Peak Travel till June 23 next year, announced the Land Transport Authority (LTA) today (May 9).

Those commuters who exit these stations between 7.45am to 8am will also continue to have 50 cents off their train fares till June 23 next year.

Data of commuters show that 7 per cent of commuters have shifted out of the morning peak period since the introduction of the Free Pre-Peak travel last June, said the LTA.

The LTA made the announcement this morning as Senior Minister of State for Transport Josephine Teo observed commuters at free pre-peak travel hours.

One primary reason why some commuters have not shifted to pre-peak travelling is that they do not have access to flexible work arrangements, such as starting and leaving work earlier, said Mrs Teo.

“In the second year of the free pre-peak trial, we are going to focus more on working with employers to make flexible work arrangements more widely available to their staff, so that their staff can have a choice of a lifestyle change,” said Mrs Teo.
http://www.todayonline.com/singapore/fre...t-extended

[greengiraffe]

Twists and turns in tracking SMRT's financial journey
Analysts' views on transport operator range from optimistic to guarded


PUBLISHED ON MAY 10, 2014 1:13 AM

SMRT owns the rail assets for the North-South, East-West and Circle lines, meaning it is responsible for maintaining and replacing the trains, signalling systems and other equipment involved in operating the services. -- ST FILE PHOTO

BY GOH ENG YEOW, SENIOR CORRESPONDENT
DEPENDING on which research report you read on SMRT Corp, you can get a very different picture on how the analyst community views the transport operator's prospects.

The share price shows why the number-crunchers have been running the rule over the firm.

SMRT stock shot up almost 20 per cent, or $1.215, in one day just over a fortnight ago on hopes that the firm might sell its rail assets to the Government.

It has been able to build on that gain to advance by a further 4.7 per cent, closing at $1.275 yesterday.

This has allowed the stock to more than claw back losses that began in January, when a lacklustre third-quarter result triggered a sell-off.

But given the lack of details on how SMRT proposes to move its rail business to a new financing framework, the market can only guess at the outcome of its talks with the Government and whether it will benefit the firm.

OCBC Investment Research analyst Andy Wong is optimistic that things will get better at SMRT.

He upgraded the counter to a "hold" on Monday, after its latest results, a turnaround from his "sell" call in January.

SMRT had reported a net profit of $16.9 million for the fourth quarter ended March 31, compared with a $12 million loss for the same period last year.

Mr Wong expects SMRT to improve its fare business, given the adjustment in fares and its efforts to manage costs and bolster productivity gains.

But he notes that most of the questions raised during the SMRT analyst briefing were about updates on the new rail financing framework.

"Management said it has already submitted a detailed proposal to the LTA in early April, but stopped short of giving a time-frame on when it would materialise as there are many issues to be discussed," Mr Wong says.

But he is confident the arrangement being worked out will benefit SMRT since "the very purpose of the rail financing framework is to enhance the sustainability of the sector".

SMRT owns the rail assets for the North-South, East-West and Circle lines, meaning it is responsible for maintaining and replacing the trains, signalling systems and other equipment involved in operating the services.

But SMRT is believed to be keen to move to a new rail financing framework similar to that given for the Downtown Line, operated by SBS Transit.

Under this, the Government owns all the assets, thus allowing the operator to focus on meeting service standards and maintenance.

DBS Vickers analyst Andy Sim says the lack of concrete detail on the rail financing arrangement means it is premature to conclude that such a framework would benefit SMRT.

He writes: "One has to keep in mind that, among other factors, a higher licensing fee is probable, as well as whether SMRT will be able to continue to operate the rental space within the train stations and recognise the rental revenue under a new framework, if any."

But OSK DMG analyst Edison Chen says in his report that "the market may have been over-optimistic in evaluating changes to rail financing", since such changes might not help to lift SMRT's operating performance.

As such, the recent share price jump may be unwarranted, he adds.

engyeow@sph.com.sg

[corydorus]

Did the problem came about with better result reporting due to cutting corners over the years ?

Whatever solution, may set a precedence to other operators or future operators.

[Dividend Warrior]

SMRT secures 80% occupancy at Sports Hub mall.

http://www.straitstimes.com/news/singapo...l-20140515

(Not vested)

[brattzz]

SMRT rental income is more valuable than the rail/bus biz... sub-out the 2 biz to SBS then! hehe!

[specuvestor]

^^ why do u think they were able to have this rental biz in the first place?

[LLI]

Was at a SBS event, the board members basically say there is alot of talks now but no stated plan from the government yet. Everyone is just wait and see mode.

Anyone has detail of SMRT proposal? Supposedly GOVT needs to do a public consultation for it? After all part of it comes from tax-payers.

I have not read up much on why the their bus operation is loss-making. Is it only SMRT's or all bus operators? Can someone point me to any articles explaining the issues?

Thanks in advance.

[CY09]

http://www.channelnewsasia.com/news/sing...95666.html

"LTA recently called for a tender to engage a consultant on this and the final report is expected in early 2016."

LTA tender will only close in end July, following which the consultant will then work on the project for approx. a year. After which, I am sure LTA will evaluate etc; Earliest implementation is only in Sept 2015. Thus, in my view, the recent market run up is putting the cart in front of the horse. People are going to be disappointed to learn how slow the process can be especially for govt agencies when they have to evaluate projects involving billion of dollars (and has no pressing societal pressures).

As for the Kallang retail rental, sure it is good, but I do not think it will add much to the bottom line. Still maintaining my bearish view of SMRT till 2015.

[brattzz]

Going up $1.475 today!! 30 milos, funds buying!

$1 to $1.475 in 5 weeks... gosh!!

[greengiraffe]

actually you chose to ignore how painful it was for it to drop from a dividend darling peak in excess of $2 to $1 before the recovery...

Too much $ chasing slightest hint of possible asset light model without even considering the social response on how actual details may pan out

Going up $1.475 today!! 30 milos, funds buying!

$1 to $1.475 in 5 weeks... gosh!!