Author: tfwee
Land Transport – DMG
New MRT line extension on East-West Line
Tuas West Extension (TWE) to add 7.5km to East-West Line (EWL). Transport Minister Raymond Lim announced that the EWL will be extended from Joo Koon station to Tuas West area. The TWE is expected to be fully operational by 2016 with ~100k daily commuters. Coupled with costs related to new train purchase (13 new trains will be acquired), constructions of a new train depot and a new road viaduct, the entire TWE is estimated to cost ~S$3.5b. While the addition of TWE is already known beforehand, its track length and operational date differ from previous indication of 14km and 2015 respectively. Despite the shorter length of TWE and delay in operational date, we maintain our belief that the Singapore rail ridership is on course for a multi-year growth trend as population size increases. Maintain OVERWEIGHT on land transport sector.
Circle Line Stage 4-5 to be operational in 4Q11. In addition to TWE addition announcement, the Transport Minister also confirmed our belief that CCL Stage 4-5 will only be operational in 2H11 (exact announced period is 4Q11) while the CCL Marina Bay extension will be ready in 2012. In order to achieve breakeven for CCL Stage 1-5 and the CCL Marina Bay extension, we estimate the daily ridership has to be in excess of 481k. While both TWE and CCL track additions will undoubtedly lead to increase in ridership for SMRT, we think that SMRT's earnings could be pressured in the short to medium term due to advance hiring associated with the CCL 4-5 beginning 2HFY11. Hence, we are maintaining NEUTRAL on SMRT with TP of S$2.08.
Prefer ComfortDelGro (CD) within the sector. We continue to favour CD over SMRT due to the former's 1) greater overseas growth potential, and 2) cheaper valuation. In addition to margin improvements from ridership increase, we think CD will be looking at acquisition of more land transport companies in foreign markets in order to achieve overseas growth. This is evidenced from CD's recent bidding for operational rights of metropolitan buses in Adelaide. The bidding involve six contracts to run 850 government-supplied buses in Adelaide for eight years. Should CD succeed in the bidding, it will have its first city bus service in Australia. The result of the bidding will be out in Mar 2011 and operations are slated to commence in Oct 2011. We think CD remains undervalued, possibly due to excessive concern regarding CD's forex exposure in relation to its extensive overseas operations in UK & Ireland (9M10: 13% CD's EBIT), Australia (9M10: 16% CD's EBIT), and China (9M10: 12% CD's EBIT). However, given the approximately even contributions from the emerging (China) and developed nations (UK, Ireland, Australia), we reckon the chances of adverse forex movement from sustained strengthening of S$ against the local currencies of CD's overseas operations as low. Maintain BUY on CD with TP of S$1.85. Currently, CD is trading at 14x FY11F PATMI vs SMRT's 18x FY11F PATMI.
Thomson – SGX
PRIVATE INVESTOR PETER LIM MAKES GENERAL OFFER FOR THOMSON MEDICAL CENTRE LIMITED
Offer at $1.75 a share triggered by deal to buy Cheng family’s controlling stake Offer values Thomson Medical Centre at approximately $513 million
29 October 2010, Singapore – Sasteria Pte Ltd, an investment holding company controlled by private investor Peter Lim, today said it is making a mandatory conditional cash offer for SGX mainboard-listed Thomson Medical Centre Limited (Thomson Medical).
The mandatory conditional offer is triggered by a married deal between Sasteria and the largest shareholder and founder of Thomson Medical, Dr Cheng Wei Chen and his family. Under the deal, the latter sold their 39.34% stake in Thomson Medical to the former at the offer price of S$1.75 a share.
Under the Singapore Code on Takeovers and Mergers, the cash offer will be extended to the remaining issued shares and is conditional on Sasteria acquiring more than 50% of Thomson Medical.
The offer price of $1.75 represents a 62% premium over the last traded price of Thomson Medical, and values the company at approximately $513 million. It is also the highest share price the company has ever been valued at since it went public in 2005.
Mr Peter Lim said: “Thomson Medical is a leading healthcare service provider in Singapore for obstetrics, gynaecology and paediatric services. Given the growing population and affluence in the region, there will be increasing demand for private healthcare services. Singapore is a regional hub for such services and Thomson Medical is well-placed to tap on this demand. We believe it has potential to develop further as a regional healthcare company.”
Thomson – SGX
PRIVATE INVESTOR PETER LIM MAKES GENERAL OFFER FOR THOMSON MEDICAL CENTRE LIMITED
Offer at $1.75 a share triggered by deal to buy Cheng family’s controlling stake Offer values Thomson Medical Centre at approximately $513 million
29 October 2010, Singapore – Sasteria Pte Ltd, an investment holding company controlled by private investor Peter Lim, today said it is making a mandatory conditional cash offer for SGX mainboard-listed Thomson Medical Centre Limited (Thomson Medical).
The mandatory conditional offer is triggered by a married deal between Sasteria and the largest shareholder and founder of Thomson Medical, Dr Cheng Wei Chen and his family. Under the deal, the latter sold their 39.34% stake in Thomson Medical to the former at the offer price of S$1.75 a share.
Under the Singapore Code on Takeovers and Mergers, the cash offer will be extended to the remaining issued shares and is conditional on Sasteria acquiring more than 50% of Thomson Medical.
The offer price of $1.75 represents a 62% premium over the last traded price of Thomson Medical, and values the company at approximately $513 million. It is also the highest share price the company has ever been valued at since it went public in 2005.
Mr Peter Lim said: “Thomson Medical is a leading healthcare service provider in Singapore for obstetrics, gynaecology and paediatric services. Given the growing population and affluence in the region, there will be increasing demand for private healthcare services. Singapore is a regional hub for such services and Thomson Medical is well-placed to tap on this demand. We believe it has potential to develop further as a regional healthcare company.”
SPAUSNET – SGX
AER rejects significant price rises by Victorian electricity distributors. SPAUSNET is one for the electricity distributors.
For more detail, click here
SPAUSNET – SGX
AER rejects significant price rises by Victorian electricity distributors. SPAUSNET is one for the electricity distributors.
For more detail, click here