SBS & SMRT

I divested out of SBS and SMRT early this year as I am not convinced that the deteriorating fundamentals can be arrested and improved upon over time.The fact that both companies are currently being run by ex-SAF personnel is also a major source of concern as they lack the business acumen and sensitivity to minority shareholders interests.Operating in a climate where raising fare is politically sensitive and with foreign drivers clamouring for equal treatment with local drivers, I do not think operating margin can improve but will definitely deteriorate. I also see no sign that management is willing to share the pain with minority shareholders in instituting pay reform at management levels.Looking at the current set of results from SMRT, I feel vindicated in my decision to get out early this year. I am a buy and hold investor but will divest when business fundamentals no longer warrant holding the stocks.
I incurred a small loss on both stocks on my divestment without including the dividends. With dividends, I would probably have a made a small profit.

SMRT 1QFY2013

Q1FY2013 relaeased on 27/7/2012

Revenue                         = $275.2M

Operating Expenses       = $245.1M

Operating Profit             = $43.9M

EPS                                 = 2.4 cents\

NTA                                = 53.6 cents

Rail                                   = $25M

Bus                                    = (5.2M)

Taxi                                   = 1.5M

Rental                                = $16.2M

Adv                                    = $4.5M

Engr & Svcs                       = $0.1M

Total Assets                        = $1781.1M

Total Liabilities                   = $952M

Gearing                               = 0.15

SMRT 3QFY2011

Results released on 31/1/2012

EPS                            = 2.4 cents
Total Assets               = $1,752,459,000
Total Liabilities         = $ 971,819,000
NAV                           = 51.4 cents
Operating Profit         = $46,384,000

Train   (P/L)                       = $25,652K
LRT     (P/L)                       = (92K)
Bus      (P/L)                       = (1715K)
Taxi     (P/L)                       = 1060K
Rental  (P/L)                       = $15,625K
Advert (P/L)                        = $5,618K
Engineering Svc (P/L)         = $718K
Investment          (P/L)         = ($482K)