Month: August 2011
ComfortDelgro – DBSV
No surprise that SBS Transit won the DTL MRT tender
Award of the Downtown line
Award of DTL to SBS Transit. It was announced that ComfortDelGro’s subsidiary, SBSTransit, has been awarded the licence to operate the Downtown MRT line. The line is the 5th MRT line and will be 40km long.
Details of DTL. The DTL will be the 5th line of Singapore’s MRT network. This line will have a total of 34 stations, and will connect the north-western and eastern parts of Singapore to the central business district. The contract is on a 19 year lease, and it will also entail 14,000 sq m GFA of retail space. This line will be fully underground, driverless (as per North-East line, currently operated by SBST, and Circle Line operated by SMRT), and will be opened in 3 stages – 2013, 2015, and 2017.
According to the terms of licence, SBST will pay the LTA (Land Transport Authority) a licence fee amounting to S$1.6bn over the 19-year term of the operating lease. The licensing fee will entail a fixed and variable component. LTA will retain ownership of operating assets and infrastructure, while SBST will take care of operations, maintenance and insurance. Average daily ridership is expected to be in excess of 700,000 when it is fully operational.
No surprise to us, no change in forecasts for now. In our view, the award does not come as a surprise to us as we have earlier deduced that SBS Transit stood in good steed to clinch this contract. Given that DTL stage 1 is only expected to be operational in 2013, we do not envisage any major impact on our forecasts for now. However, we do note that there could be a gestation period, leading to initial start up losses, from the time DTL1 is operational till the other 2 later stages are operational, expected in 2015 and 2017.
CD still the preferred land transport counter. We continue to prefer CD over SMRT for it’s cheaper valuation and diversified geographical exposure of its business. With the award of this contract, this helps to increase its market share of the rail network, which we see as the key mode of public transport which will enjoy stronger growth vis-avis buses. The award will boost long term growth but could dampen earnings growth when the line is operational in 2013.
Bloomberg: CD SP | Reuters: CMDG.SI
ComfortDelgro – DBSV
No surprise that SBS Transit won the DTL MRT tender
Award of the Downtown line
Award of DTL to SBS Transit. It was announced that ComfortDelGro’s subsidiary, SBSTransit, has been awarded the licence to operate the Downtown MRT line. The line is the 5th MRT line and will be 40km long.
Details of DTL. The DTL will be the 5th line of Singapore’s MRT network. This line will have a total of 34 stations, and will connect the north-western and eastern parts of Singapore to the central business district. The contract is on a 19 year lease, and it will also entail 14,000 sq m GFA of retail space. This line will be fully underground, driverless (as per North-East line, currently operated by SBST, and Circle Line operated by SMRT), and will be opened in 3 stages – 2013, 2015, and 2017.
According to the terms of licence, SBST will pay the LTA (Land Transport Authority) a licence fee amounting to S$1.6bn over the 19-year term of the operating lease. The licensing fee will entail a fixed and variable component. LTA will retain ownership of operating assets and infrastructure, while SBST will take care of operations, maintenance and insurance. Average daily ridership is expected to be in excess of 700,000 when it is fully operational.
No surprise to us, no change in forecasts for now. In our view, the award does not come as a surprise to us as we have earlier deduced that SBS Transit stood in good steed to clinch this contract. Given that DTL stage 1 is only expected to be operational in 2013, we do not envisage any major impact on our forecasts for now. However, we do note that there could be a gestation period, leading to initial start up losses, from the time DTL1 is operational till the other 2 later stages are operational, expected in 2015 and 2017.
CD still the preferred land transport counter. We continue to prefer CD over SMRT for it’s cheaper valuation and diversified geographical exposure of its business. With the award of this contract, this helps to increase its market share of the rail network, which we see as the key mode of public transport which will enjoy stronger growth vis-avis buses. The award will boost long term growth but could dampen earnings growth when the line is operational in 2013.
Bloomberg: CD SP | Reuters: CMDG.SI
August 2011
Results Announcement
- 2 Aug 11 : STEng (Q211) – EPS 4.29ct (todate 7.93ct) ; Div 3ct
- 4 Aug 11 : StarHub (Q211) – EPS 4.54ct (todate 8.57ct) ; Div 5ct (todate 10ct)
- 10 Aug 11 (AM) : MIIF (1H11) – Div 2.75ct
- 11 Aug 11 (AM) : SingTel (Q112) – EPS 5.75ct
- 11 Aug 11 : SBSTransit (1H11) – EPS 3.17ct (todate 7.01ct) ; Div 3.1ct
- 12 Aug 11 : ComfortDelgro (1H11) – EPS 2.87ct (todate 5.26ct) ; Div 2.7ct
STI = 2885.26 (+93.37)
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SPH |
FY10 (Aug) |
31 |
27 |
$3.80 |
7.105% |
12.26 |
Interim 7ct ; Final 9ct + 11ct (Special) |
|
SingPost |
FY11 (Mar) |
8.369 |
6.25 |
$1.06 |
5.896% |
12.67 |
Q1, Q2, Q3 1.25ct ; Q4 2.5ct |
|
STI ETF |
Jun-11 |
— |
4.5 |
$2.93 |
3.072% |
— |
Jun11 4.5ct ; Dec10 3.5ct |
|
SATS |
FY11 (Mar) |
17.4 |
17 |
$2.27 |
7.489% |
13.05 |
Final 6ct + Special 6ct ; Interim 5ct |
|
ST Engg |
FY10 (Dec) |
16.21 |
14.55 |
$2.94 |
4.949% |
18.14 |
Final 4ct + 7.55ct (Special) ; Interim 3ct |
Transport
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SBSTransit |
FY10 (Dec) |
17.63 |
8.80 |
$1.83 |
4.809% |
10.38 |
Interim 4.5ct ; Final 4.3ct |
|
ComfortDelGro |
FY10 (Dec) |
10.95 |
5.50 |
$1.38 |
4.000% |
12.56 |
Interim 2.7ct ; Final 2.8ct |
|
SMRT |
FY11 (Mar) |
10.6 |
8.5 |
$1.81 |
4.696% |
17.08 |
Interim 1.75ct ; Final 6.75ct |
TELCO
|
Stock |
Period |
EPS cts |
DPS cts |
Mkt |
Yield |
PE |
Div Breakdown |
|
SingTel |
FY11 (Mar) |
24.02 |
25.8 |
$3.11 |
8.682% |
12.95 |
Interim 6.8ct ; Final 9ct + Special 10ct |
|
M1 |
FY10 (Dec) |
17.5 |
17.5 |
$2.51 |
6.972% |
14.34 |
Interim 6.3ct ; Final 7.7ct + Special 3.5ct |
|
StarHub |
FY10 (Dec) |
15.34 |
20 |
$2.88 |
6.944% |
18.77 |
Q1 5ct ; Q2 5ct ; Q3 5ct ; Q4 5ct |
Funds / Infrastructure
|
Stock |
Period |
DPS cts |
Mkt |
Yield |
NAV |
Div Breakdown |
|
SPAus |
2H11 (Mar-11) |
A4.0 (Gross) |
$1.200 |
8.565% |
A$0.89 |
2H11 A4.0ct ; 1H11 A4.0ct |
|
MIIF |
1H – Jun11 |
2.75 |
$0.530 |
10.377% |
$0.81 |
1H11 2.75ct ; 2H10 1.5ct |
* SPAus DPU in A$. Yield is Calculated Using Latest Exchange Rate (1.2848) fm Yahoo
NOTES :
- Mkt Price is as on 31-Aug-11
- ComfortDelgro : Q211 (Jun) – 2.7ct
- SBSTransit : Q211 (Jun) – 3.1ct
- MIIF : 1H11 (Jun) – 2.75ct ; 2H10 (Dec) – 1.5ct
- StarHub : Q211 (Jun) – 5ct ; Q111 (Mar) – 5ct
- ST Engg : 1H11 (Jun) – 3ct
- SingPost : Q112 (Jun11) – 1.25ct
- M1 : 1H11 (Jun) – Interim 6.6ct
- SATSvcs : Q411 (Mar11) – Final 6ct + Special 6ct ; Q211 (Sep10) – Interim 5ct
- SPAus : 2H11 (Mar11) – A4ct (before tax) / A3.7721ct (after tax) ; 1H11 (Sep10) – A4ct (before tax) / A3.7772ct (after tax)
- SingTel : 2H11 (Mar11) – Final 9ct + Special 10ct ; 1H11 (Sep10) – Interim 6.8ct
- SMRT : Q411 (Mar) – Final 6.75ct ; Q211 (Sep10) – Interim 1.75ct
- SPH : 1H11 (Feb) – 7ct
- StarHub : FY11 Div Guidance – 5ct/Q
SBS Transit – BT
SBS Transit to operate Downtown Line
LTA shortens licence period to 15 years to boost contestability
The Downtown Line (DTL), the first stage of which will open in 2013, will be operated by SBS Transit (SBST) under the new rail financing framework.
|
|
The Land Transport Authority (LTA) yesterday announced that it has awarded the licence to operate the DTL to SBST with a shorter licence period to enhance contestability in the rail sector, with the operating assets to be owned by LTA.
The DTL is the first rail line put up for competitive tender under the new rail financing framework. The framework was announced by the government last year to inject greater contestability in the industry and achieve the Land Transport Master Plan's objectives by driving greater efficiency and service improvements.
Under the framework, the period for new Rapid Transit System (RTS) licences is being shortened from the existing 30-40 years to about 15 years. This means SBST's licence to run the DTL will end 15 years after the full completion of the line in 2017.
LTA says that a shorter licence enhances the level of contestability as the operator faces the prospect of competition at the end of its licence terms.
At the same time, LTA can refresh the licence conditions when the licence ends to allow for changes in the operating and business environment.
The new framework also makes the LTA, not the operator, the owner of the rail operating assets. The authority will decide on the replacement of and investment in trains and operating assets, thus allowing it to influence train carrying capacity and service levels more directly.
Also new is an annual Licence Charge that SBST as the appointed DTL operator will have to pay for 19 years – from 2013, when the first stage of the line is opened, until 15 years after 2017 when all three stages of the DTL are completed. Total payment during this 19-year period is expected to be $1.6 billion.
The DTL is a medium-capacity RTS that will facilitate direct travel from north-western and north-eastern Singapore to the Central Business District and Marina Bay. When fully operational, daily ridership is expected to be 500,000 initially and rising to 700,000 over time.
SBST, which operates three out of four public buses in Singapore, already runs the fully automated North-east Line (NEL) as well as the Sengkang and Punggol Light Rail Transit (LRT) systems.
The fully automated underground DTL will increase SBST's rail network from 40km currently to 82km, and its share of Singapore's total rail network will rise to 36 per cent.
But SMRT Trains remains the bigger rail network here with its North-South and East-West MRT Lines, as well as the recently fully opened Circle Line.
SBS Transit – BT
SBS Transit to operate Downtown Line
LTA shortens licence period to 15 years to boost contestability
The Downtown Line (DTL), the first stage of which will open in 2013, will be operated by SBS Transit (SBST) under the new rail financing framework.
|
|
The Land Transport Authority (LTA) yesterday announced that it has awarded the licence to operate the DTL to SBST with a shorter licence period to enhance contestability in the rail sector, with the operating assets to be owned by LTA.
The DTL is the first rail line put up for competitive tender under the new rail financing framework. The framework was announced by the government last year to inject greater contestability in the industry and achieve the Land Transport Master Plan's objectives by driving greater efficiency and service improvements.
Under the framework, the period for new Rapid Transit System (RTS) licences is being shortened from the existing 30-40 years to about 15 years. This means SBST's licence to run the DTL will end 15 years after the full completion of the line in 2017.
LTA says that a shorter licence enhances the level of contestability as the operator faces the prospect of competition at the end of its licence terms.
At the same time, LTA can refresh the licence conditions when the licence ends to allow for changes in the operating and business environment.
The new framework also makes the LTA, not the operator, the owner of the rail operating assets. The authority will decide on the replacement of and investment in trains and operating assets, thus allowing it to influence train carrying capacity and service levels more directly.
Also new is an annual Licence Charge that SBST as the appointed DTL operator will have to pay for 19 years – from 2013, when the first stage of the line is opened, until 15 years after 2017 when all three stages of the DTL are completed. Total payment during this 19-year period is expected to be $1.6 billion.
The DTL is a medium-capacity RTS that will facilitate direct travel from north-western and north-eastern Singapore to the Central Business District and Marina Bay. When fully operational, daily ridership is expected to be 500,000 initially and rising to 700,000 over time.
SBST, which operates three out of four public buses in Singapore, already runs the fully automated North-east Line (NEL) as well as the Sengkang and Punggol Light Rail Transit (LRT) systems.
The fully automated underground DTL will increase SBST's rail network from 40km currently to 82km, and its share of Singapore's total rail network will rise to 36 per cent.
But SMRT Trains remains the bigger rail network here with its North-South and East-West MRT Lines, as well as the recently fully opened Circle Line.