Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
OCBC Investment Research in a Jan 3 research report says: "SMRT announced that it will increase train frequencies on the NSEWL (North-South East-West Lines) to lower the average interval waiting times during peak commuter travelling periods.
"As we have previously lowered our FY2012F operating profits to account for the possibility of increased train runs and higher 3Q repair and maintenance costs, we are leaving our earnings estimates unchanged pending the release of SMRT's 3Q12 results.
"Even with the expected increase in repair and maintenance expenses as well as electricity consumption costs resulting from a greater number of train runs, we maintain our assertion that SMRT's dividend payout ability remains intact at least for the year (FY2012F dividend yield: 4.4%). Therefore, we leave our DDM-derived fair value of $2.04 unchanged. MAINTAIN BUY."
Company Name: SMRT CORPORATION LTD
| Research House: OCBC | Price Call: BUY | Target Price: 2.04 |
OCBC Investment Research in a Jan 3 research report says: "SMRT announced that it will increase train frequencies on the NSEWL (North-South East-West Lines) to lower the average interval waiting times during peak commuter travelling periods.
"As we have previously lowered our FY2012F operating profits to account for the possibility of increased train runs and higher 3Q repair and maintenance costs, we are leaving our earnings estimates unchanged pending the release of SMRT's 3Q12 results.
"Even with the expected increase in repair and maintenance expenses as well as electricity consumption costs resulting from a greater number of train runs, we maintain our assertion that SMRT's dividend payout ability remains intact at least for the year (FY2012F dividend yield: 4.4%). Therefore, we leave our DDM-derived fair value of $2.04 unchanged. MAINTAIN BUY."
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