The higher cost (especially from staff related) was not offset by the higher revenue it achieved.
Based on the lower EPS of $0.02 for the first half, annualised at $0.04 EPS and the current share price of $1.275 derives a PE of 32x.
This is not attractive as compared to other transport stocks. In my personal opinion, I will switch to other transport counters.
A easy to increase revenue is increase the fare, but I doubt they w allow that t happen until after 2016. So now it's only the rental income that they can count on.
Smrt really looks like a sinking ship, comfort delgro seems like a
Better bet for exposure in transport sector
I thought the philosophy is to buy when no one else seems interested?
Though the numbers appear to be dismal, SMRT is still a going concern and has a monopoly in train transport. It is still making profits ( in total ) and once the Gov approves a fare hike.. thats it.
It is perhaps a matter of time. 2014 to 2016 is 2 years. It is not written in stone that the fare hike will come after, and it is very possible that fares may go up between now and Chinese new year too.
At current price, dividend yield is about 1.5%. still better than bank deposits. Of course, if you buy Yongnam, the yield can be better.
I place my bet on SMRT.... before the crowd wakes up. I only have time.
Logical, but most people are just watching. Anyway if buy now, in the long run should be O. K. lah. imo.
I thought the philosophy is to buy low PE or low PB stocks that no one interested?
I shall wait till better times before buying into SMRT.
Correct. But what is low PE or low PB for one stock is different from another stock. Viz a viz by current market valuation. In fact i agree that SMRT is still quite expensive to me to buy now.
SMRT the PE is wayyyy too high
I think comfort delgro at PE 15 is more fairly priced
(01-11-2013, 08:00 PM)ForeverAlone Wrote: [ -> ]SMRT the PE is wayyyy too high
I think comfort delgro at PE 15 is more fairly priced
Valuation of SMRT base on historical earning is misleading, with the impending changes, IMO. Forward earning is a more appropriate one.
The cost-plus model might help to bring SMRT back to its old good days with EPS of 10+ cents, which means PE of 12-13 base on today price of $1.28, Sound good?
(not vested)
I seriously doubt the cost-plus model will bring it to a 10+ cent EPS. My personal opinion is that the govt will try to ensure SMRT achieves an annual ROE of approx. 10% under the new model. This would indicate EPS to be approx. 5-7 cents per year with shareholders getting a 50% payout.
The new model will have to ensure the delivery of shareholder value is matched with ensuring a quality transportation that Singaporeans expect (good transport service and low fares).
The business of SMRT is relatively easy to control since approx. 99% of its revenue comes from Singapore