Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
SMRT said net profit for the first quarter ended June fell 8.9% to $34.8 million from $38.2 million a year ago.
Company Name: SMRT CORPORATION LTD
| Research House: MacQuarie | Price Call: SELL | Target Price: 1.59 |
Macquarie has cut its target price for Singapore public transport operator (SMRT.SI) to $1.59 from $1.75 and kept its underperform rating.
Macquarie has cut its earnings forecasts for SMRT in fiscal 2012 and 2013 by 10% each, after the firm reported weak first quarter earnings, hit by high staff and fuel costs.
Macquarie has cut its earnings forecasts for SMRT in fiscal 2012 and 2013 by 10% each, after the firm reported weak first quarter earnings, hit by high staff and fuel costs.
SMRT said net profit for the first quarter ended June fell 8.9% to $34.8 million from $38.2 million a year ago.
The brokerage said it expects SMRT's earnings in 2012 to decline by 6%, as its margins come under pressure from weak ridership on one of its rail lines, the Circle Line.
“Management also expects higher repair and maintenance expenses on train operations, while volatility in diesel and electricity prices and an inability to pass through (higher costs to consumers) remain a concern,” Macquarie said in a report.
Shares of SMRT have fallen 7.4% since the start of the year to close at $1.88 on Wednesday.
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