SMRT

[CityFarmer]

The SMRT seems on a recovery path, even before the closure of the rail asset financing negotiation...

(not vested)

SMRT Corp posts 37% rise in 1Q earnings to $22.4 mil

Transport operator SMRT Corp has announced a 36.8% increase in earnings to $22.4 million for the 1QFY2015 ended June.

SMRT said revenue increased 4.3% to $297.1 million in 1QFY2015 due to higher revenue across most segments.

http://www.theedgesingapore.com/the-dail...4-mil.html

[Ben]

It is a decent set of Q1 result IMHO. Losses from the Fare business has narrow from -$5.5M to -$1.1M, due to improved profit from Rail and lower losses from Bus. This includes the $1.6M penalty imposed by LTA. It is highly possible that Fare business will turn in a profit as soon as the next quarter. Non fare business continues to shine, especially Rental division. And with contribution from Sport Hub in the future, this division looks set to look even better.

Taxi rental continue to perform satisfactory. The other day I was talking to a taxi driver who is also one of my relatives. He was lamenting that the industry has changed so much. The days of empty taxi waiting for hirers are over, now it is a long queue of potential drivers waiting for a car. It jell with the increase taxi rental revenue we see in SMRT results.

I personally think that SMRT has seen it worst and is turning around. Yes, there are still formidable obstacles ahead, but things seem to be moving alone in the right direction. In its outlook statement, the company expects its prospect to improve with the impending regulatory changes in the land transportation industry. Hmm…impending…I place my trust on Desmond Kuek, a former army general, mission focus, swift and decisive.

[CityFarmer]

SMRT wants a share of taxi booking app in Singapore. Will the JV able to compete with the existing two, the GrabTaxi and EasyTaxi?

(not vested)

SMRT Roads announces Joint Venture with Hailo Network

SMRT Road Holdings Ltd (SMRT Roads) today announced a Joint Venture Agreement
with London-based taxi mobile application developer Hailo Network Holdings Limited
(Hailo Network) to form Hailo Singapore Pte Ltd. Under the agreement, a taxi booking
application will be introduced to passengers and taxi drivers in Singapore.
Mr. Benny Lim, Managing Director of SMRT Roads, said "The Joint Venture supports
our existing efforts in SMRT to provide enhanced travel experience for our passengers.
The integration of Hailo Network's expertise in taxi booking systems and SMRT Road's
experience in taxi operations and fleet management, offers a seamless taxi booking
experience for our passengers and taxi drivers in Singapore."
http://infopub.sgx.com/FileOpen/Media_Re...eID=313993

[brattzz]

read this?
http://www.washingtonpost.com/blogs/worl...ears-uber/

smrt adopts?

[CityFarmer]

I post the news here, since more relevant to the company.

It is an important pre-requisite for smooth transition to the new operating model.

(not vested)

Panel issues guidelines to protect bus sector employees

SINGAPORE — Guidelines to protect the welfare of bus sector employees that operators competing for contracts under the new public bus contracting model have to follow have been issued by a tripartite committee that spent months culling feedback from workers who feared upheaval when the new model takes effect.

When operators take on a contract for routes previously run by another operator, they will have to offer affected employees a job and must offer employment terms that at least match what employees were enjoying before the transition. Affected staff must also be allowed to choose whether they wish to join the new operator or be redeployed by their current employer.

The guidelines also spell out the obligations of both incoming and outgoing bus operators. For instance, incoming operators must follow guidelines in areas such as the timeline for the offer of employment and recognition of the length of service. A driver who served the outgoing operator for 20 years, for example, should be given entitlements and benefits based on his 20 years of service. Furthermore, an affected employee must be offered a job by an incoming operator at least six months before the new contract starts. The employment terms are to be effective for at least one year.

These guidelines will be incorporated into the Land Transport Authority’s tender specifications and subsequent contracts with the public bus operators. The bus contracting model is part of the Government’s efforts to improve public bus services. Tenders for three packages of services will called be later this or next month and services will start from the second half of 2016.
...
http://www.todayonline.com/singapore/pan...-employees

[CityFarmer]

Actively exploring new ventures for growth, while the existing core-business as cash cow?

(not vested)

SMRT subsidiary and Toshiba sets up JV to market energy-efficient propulsion system for metro trains

SMRT announced that subsidiary Singapore Rail Engineering (SRE) and Toshiba Corporation have set up joint venture company Railise Pte Ltd.

Railise will market and supply propulsion systems using Toshiba’s Permanent Magnet Synchronous Motor (PMSM) technology.

PMSM is a train drive system that cuts energy consumption and noise while minimising maintenance downtime.

The joint venture agreement was signed today at InnoTrans, the international transport technology trade fair taking place in Berlin this week.

Incorporated this June as a wholly-owned subsidiary of SMRT, SRE offers a full suite of products, solutions and services that aims to help mass transit operators run their network better.

SRE operates under the principle that it will only market products and solutions that are validated and used by SMRT.

SMRT Corp closed 3.8% higher at $1.58 today.
http://www.theedgesingapore.com/the-dail...rains.html

[CityFarmer]

I am sure the company will submit its tender. Will SMRT get it? or rather Is securing the tender critical to the company?

(not vested)

First package of routes under bus contracting model up for tender

SINGAPORE — The first package of routes under the new bus contracting model was put up for tender today (Oct 3), kickstarting the authorities’ overhaul of the bus industry towards a model where the Government will own the bus assets and pay the operators a fee to run the services.

There will be 26 routes up for grabs — two more than the 24 routes previously announced by the Land Transport Authority (LTA). This is to make provisions for plans to run two additional new routes, the LTA said.

The package will be open to both Singapore and foreign bus operators. Services will operate from the Bukit Batok, Clementi and Jurong East interchanges, and terminate at the Bedok, Boon Lay, Marina Centre, Shenton Way, and Toa Payoh interchanges.

Under the tender specifications, the operator is expected to run bus services under specified performance standards. It is also expected to operate and maintain the buses, the onboard equipment such as the driver console and ticketing equipment, as well as the Bukit Batok and Jurong East Bus Interchanges and the new Bulim Bus Depot.

The operator also has to collect the fares of those services on behalf of the Government and provide customer management services such as a lost and found service, and a commuter hotline.

The LTA said the service fee — which is the successful operator’s bid price for the package — will be adjusted during the contractual period, to take into account inflation, changes in wage levels, and fuel costs. Fees will be paid on a monthly basis with deductions for non-operated mileage that is within the operator’s control, such as driver absenteeism.

The operator’s performance will also be assessed annually under an Incentive Framework, such as on its bus service reliability, the punctuality of its first and last bus, and whether it maintains the bus operating assets.

The operator will receive an additional payment of up to 10 per cent of its annual service fee if it meets the standards, or have its fees deducted by up to 10 per cent if it does not.

The tender, which will close in January, will be awarded in the second quarter of next year. The services will be implemented in three tranches in June 2016.
http://www.todayonline.com/singapore/fir...del-tender

[desmondxyz]

http://www.channelnewsasia.com/mobile/bu...09796.html

SMRT rumoured to be considering S$1.6b bid for Addison Lee

POSTED: 11 Oct 2014 18:17
SINGAPORE: Singapore public transport operator SMRT is said to be considering a takeover bid for Addison Lee, London's biggest minicab operator. Britain's Sky News reported on Saturday (Oct 11) that SMRT is in the early stages of making an offer of £800 million (S$1.6 billion).

SMRT cannot be reached to confirm its interest in the bid.

Addison Lee is being put up for sale by its private equity owner, Carlyle Group, which paid £300 million for a majority stake in April 2013. According to a source close to the company, Carlyle has decided to start an auction process after receiving unsolicited offers for the business.

Besides SMRT, it is believed that private equity firms BC Partners, CVC Capital and Charterhouse are among the organisations making bids.

In September, SMRT announced its tie-up with Hailo, the London-based taxi booking application developer. SMRT and Hailo are expected to launch their services this month.
- CNA/ac

[LLS]

SMRT is already pretty highly geared, can't imagine them making such a big purchase, investors beware

[CY09]

No doubt SMRT is highly geared now. However, do note SMRT will be selling off their operating assets to LTA for buses by 2016-2017 and mrt possibly 2018. Elaborating further on the rail financing; it will not happen before 2016 as the current govt is unlikely to have sufficient budget to finance this, the next 5-yr govt's budget is likely to finance this. This means the company will have about 1.2 billion cash inflow from these 2 financing schemes over the next 5 years.

Secondly, their fixed rate loans ($700m) are of rather low interest; 10 years at 2.63-3.02%. This is much better than companies like KSH, Swissco or Swiber whose fixed rate notes are of a shorter duration but higher i/r. Even capitamall/capitaland cant beat SMRT in terms of interest rates obtained for their bonds. The main reason is due to the infrastructure industry SMRT operates in vis-a-vis the others mentioned; its easier to get better loan terms when operating in transport infrastructure.

However, I will not invest in SMRT still as there are better companies out there for my money.