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SBS Transit

SBS Transit Q3 earnings 1.7% higher at S$18.2 million in spite of lower operating profit

It expects increases in costs to moderate with lower inflation and energy prices

LISTED bus and train operator SBS Transit : S61 0%&rsquo s : S61 0%net profit inched up 1.7 per cent year on year to S$18.2 million for the third quarter of FY2024 to September.

This is in spite of a reduced operating profit but a lower tax expense helped to cushion the hit.

In its business update filed to the Singapore Exchange on Friday (Nov 8), SBS Transit reported a 2.1 per cent rise in revenue to S$396.1 million for the quarter, driven mainly by higher average fare and ridership for rail.

But operating expense was 2.3 per cent higher, pushed up by an increase in costs for staff and premises, as well as higher rail licence charge and advertising concession fee.

This resulted in the public transport operator&rsquo s operating profit being 0.1 per cent lower year on year at S$18.8 million.

However, SBS Transit expects increases in costs to moderate with lower inflation and energy prices, going forward.

Revenue wise, rail operations are expected to rake in higher proceeds due to impending increase in fares and expected higher ridership, said SBS Transit. The Public Transport Council has announced a fare increase of 6 per cent with effect from Dec 28, 2024.

Meanwhile, bus operations revenue is expected to decrease upon the handover of the Jurong West bus package.

For the nine months of FY2024, SBS Transit posted a 1.5 per cent drop in net profit to S$51.9 million even as revenue climbed 4 per cent to S$1.2 billion.

The 4.3 per cent rise in operating costs outstripped the percentage improvement in top line, resulting in operating profit for the nine month

So much net cash now in the company. Is Comfortdelgro going to be doing a privatisation of the 26% it does not own? They could even do it more attractively by offering part shares given SBS is lower valued.

TP should be 2.80 and not 1.80 as stated below.

Alignment ( Date: 23-Jul-2024 02:01) Posted:

DBS: ComfortDelGros SBSTransit retains Seletar Bus Package with SGD526m tender value

SBSTransit retains Seletar bus package with a SGD526 million contract value to operate for the next five years from Mar 2025, with an option for a two- to five-year extension.
Package win reaffirms SBSTransits position as the incumbent bus operator with 8 bus packages out of a total 14 in Singapore
Removes near term concern that incumbent position could be undermined
Maintain BUY, TP: SGD1.80

Whats new?

SBSTransit retains Seletar Bus contract with a bid of SGD526m. The Land Transport Authority (LTA) has awarded a SGD526 million contract to SBS Transit Ltd (SBST), a subsidiary of ComfortDelGro, for the Seletar bus package, which includes 29 routes and the management of Ang Mo Kio and Yio Chu Kang Bus Interchanges. A total of five companies bid for the contract, with nine tenders submitted and contract values ranging from SGD520 million (Tower Transit) to as high as SGD612 million (Bravo Transport from Hong Kong). The other bidders were SMRT Buses and New Continental from Spain. SBST was selected through a two-envelope tender process that evaluated both quality and price. Their proposal included initiatives to enhance the public bus industry, such as an electric bus training center and smart systems for improved productivity and sustainability. SBST also proposed an inclusive transport experience with a sign language virtual assistant and school-friendly bus service.

Our views

Reaffirms SBSTransits position as the incumbent bus operator. SBSTransit is the incumbent operator for the Seletar Bus Package and was the previous winner with the lowest bid at a contract value of SGD480.3 million for the current existing contract period from 2018 to 2025. This contract was first awarded on a negotiated basis for a two-year term in 2016, when the public bus system transitioned into the bus contracting model. In August 2023, when the tender results for two contracts & ndash Bukit Merah Bus Package and Jurong West Bus Package & ndash was announced, SBSTransit retained only the former but lost the Jurong West Package to SMRT Buses. With the retention of this bus package, SBSTransit will operate eight of 14 bus packages, with SMRT Buses, Tower Transit, and Go-Ahead operating three, two, and one, respectively. The continuation of the contract for the Seletar Bus Package should remove any near-term concerns that SBSTransits position as the incumbent public bus operator is being undermined.

https://links.sgx.com/1.0.0/corporate-announcements/IC4XU2SP75OQI5WM/815288_SBS%20Transit%20Media%20Release%20Results%20for%20Half-Year%20ended%2030%20June%202024.pdf

DBS: ComfortDelGros SBSTransit retains Seletar Bus Package with SGD526m tender value

SBSTransit retains Seletar bus package with a SGD526 million contract value to operate for the next five years from Mar 2025, with an option for a two- to five-year extension.
Package win reaffirms SBSTransits position as the incumbent bus operator with 8 bus packages out of a total 14 in Singapore
Removes near term concern that incumbent position could be undermined
Maintain BUY, TP: SGD1.80

Whats new?

SBSTransit retains Seletar Bus contract with a bid of SGD526m. The Land Transport Authority (LTA) has awarded a SGD526 million contract to SBS Transit Ltd (SBST), a subsidiary of ComfortDelGro, for the Seletar bus package, which includes 29 routes and the management of Ang Mo Kio and Yio Chu Kang Bus Interchanges. A total of five companies bid for the contract, with nine tenders submitted and contract values ranging from SGD520 million (Tower Transit) to as high as SGD612 million (Bravo Transport from Hong Kong). The other bidders were SMRT Buses and New Continental from Spain. SBST was selected through a two-envelope tender process that evaluated both quality and price. Their proposal included initiatives to enhance the public bus industry, such as an electric bus training center and smart systems for improved productivity and sustainability. SBST also proposed an inclusive transport experience with a sign language virtual assistant and school-friendly bus service.

Our views

Reaffirms SBSTransits position as the incumbent bus operator. SBSTransit is the incumbent operator for the Seletar Bus Package and was the previous winner with the lowest bid at a contract value of SGD480.3 million for the current existing contract period from 2018 to 2025. This contract was first awarded on a negotiated basis for a two-year term in 2016, when the public bus system transitioned into the bus contracting model. In August 2023, when the tender results for two contracts & ndash Bukit Merah Bus Package and Jurong West Bus Package & ndash was announced, SBSTransit retained only the former but lost the Jurong West Package to SMRT Buses. With the retention of this bus package, SBSTransit will operate eight of 14 bus packages, with SMRT Buses, Tower Transit, and Go-Ahead operating three, two, and one, respectively. The continuation of the contract for the Seletar Bus Package should remove any near-term concerns that SBSTransits position as the incumbent public bus operator is being undermined.

SINGAPORE &ndash Public bus services operating from Seletar bus depot, including 24, 70 and 130, will continue to be run by SBS Transit (SBST) until at least 2030.

Collected FY 24 dividend today

MrBear12 ( Date: 14-May-2024 10:51) Posted:

Good result
Stable company.
Govt supported in good and bad

Joelton ( Date: 14-May-2024 10:48) Posted:

SBS Transit 1QFY2024 profit after tax up 7.5% y-o-y on higher fare revenue

SBS Transit has reported profit after tax of $17 million for 1QFY2024, up 7.5% y-o-y. Revenue in the same period was up 6.6% y-o-y to $392.1 million, according to the transport operator in its business update for the three months ended March.

SBS Transit attributes the higher revenue to higher average fare and ridership.

The company, which manages a network of outdoor advertising platforms, collected higher revenue of $0.65 million.

On the other hand, the company incurred higher costs for staff and maintenance as well as advertising concession fees.

Going forward, SBS Transit is seeing continued recovery in rail ridership.

However, it warns that the tight labour market for bus drivers, whom the company calls " bus captains" , remains a challenge.

Come September, the company will hand over its existing bus operating package for Jurong West to the new operator who won the tender.

With the easing of inflation and electricity costs, SBS Transit expects cost increases to moderate.