SMRT

[CY09]

Focusing back on SMRT, I noticed that SMRT bus operations keep posting steeper losses. In fact this FY, it is already below cashflow breakeven point. My calculations is that the bus operations will continue to be below cashflow breakeven point this year. (I assumed 20.39 Mil depreciation expense of bus as in FY 2012).

If i was truly a private company, I will just shut down my bus operations or sell it off to SBS if it is interested, unless SMRT knows that bus fares will increase by 6-8% during the next fare review. This will ensure it breakseven on cashflow. But oh well, considering who its major shareholder is and the affliation mgmt has with the ruling govt. SMRT just has to absorb the losses. its LRT operations is another cash flow loss making operations too!

Will likely consider investing in SMRT when a) the sg population wakes up to reality on transport issues by accepting (without going to Hong Lim Park to "complain" that they have to pay higher fares etc) or b)WP becomes govt and nationalise public transport. Hope they give a good takeover price!
(not vested now)