Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Taxi, Bus or&nbsp;MRT, which is the best mode of transport/investment?<ol><li>ComfortDelGro ("CD SP") -&nbsp;Largest Market Cap, highly liquid and geographically diversified.</li><li>SMRT ("MRT SP") - Always in the headlines, been hit by a spate of breakdowns recently and Mr. Khaw Boon Wan been spotted joining the MRT crowd once again.</li><li>SBS Transit ("SBUS SP") - Smallest Market Cap, illiquid and under researched.&nbsp;</li></ol>It really is the case of the Tortoise and the Hare -in terms of share price performance, who will win the race?&nbsp;

Taxi, Bus or&nbsp;MRT, which is the best mode of transport/investment?ComfortDelGro ("CD SP") -&nbsp;Largest Market Cap, highly liquid and geographically diversified.SMRT ("MRT SP") - Always in the headlines, been hit by a spate of breakdowns recently and Mr. Khaw Boon Wan been spotted joining the MRT crowd once again.SBS Transit ("SBUS SP") - Smallest Market Cap, illiquid and under researched.&nbsp;It really is the case of the Tortoise and the Hare -in terms of share price performance, who will win the race?&nbsp;

Although small, illiquid and disregarded, SBUS fascinates us. We've written a heap of insights on it. Subscribers can view these in the Insight Stream at the bottom of this insights.&nbsp;A few days ago, SBUS announced it will be transferring part of its bus fleet (BSEP) to the Land Transport Authority. In exchange, the LTA will waive-off its outstanding loan (SGD164mm).&nbsp;This was a good outcome as it confirmed a shift to the new&nbsp;operating&nbsp;model, but we missed&nbsp;an important detail: how the interest expense on this loan is handled, and what that means to future earnings for SBUS. This also has important implications for parent, Comfort Delgro.&nbsp;More below the fold.&nbsp;

Although small, illiquid and disregarded, SBUS fascinates us. We've written a heap of insights on it. Subscribers can view these in the Insight Stream at the bottom of this insights.&nbsp;A few days ago, SBUS announced it will be transferring part of its bus fleet (BSEP) to the Land Transport Authority. In exchange, the LTA will waive-off its outstanding loan (SGD164mm).&nbsp;This was a good outcome as it confirmed a shift to the new&nbsp;operating&nbsp;model, but we missed&nbsp;an important detail: how the interest expense on this loan is handled, and what that means to future earnings for SBUS. This also has important implications for parent, Comfort Delgro.&nbsp;More below the fold.&nbsp;

SBUS hits Gear 3: the case of the mysterious BSEP loan!

Head of Digital Services at Singapore Post Ltd, Singapore Post Limited

Bernard Leong

Head of Digital Services at Singapore Post Ltd

Singapore Post Limited

Thematic (Sector/Industry)

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their current business model in a controlled pace.&nbsp;The trick lies in capital allocation and separation of the products/services moving towards both ends. Digital products often require high cost of acquisition contrary to perception by businesses that it is cheaper against traditional channels.

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their current business model in a controlled pace.&nbsp;The trick lies in capital allocation and separation of the products/services moving towards both ends. Digital products often require high cost of acquisition contrary to perception by businesses that it is cheaper against traditional channels.

Digital disruption bifurcates traditional market segmentation

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>The Chinese government and the destination countries have publicly stated that they can visit each other.</li>
<li>Higher ridership is the main result of this theme while consumption could also accelerate but on-the-ground research has proven Chinese tourists are not there yet. </li>
<li>
<a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP)</a> , <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> , <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> and <a href="https://www.smartkarma.com/entities/mtr-corp" target="_blank" data-smartkarma-citation="entities:13289:1" rel="noopener">MTR Corp (66 HK)</a> are the main transport beneficiaries.</li>
</ul>


The Chinese government and the destination countries have publicly stated that they can visit each other.
Higher ridership is the main result of this theme while consumption could also accelerate but on-the-ground research has proven Chinese tourists are not there yet. 

Keisei Electric Railway Co (9009 JP) , Comfortdelgro Corp (CD SP) , Airports of Thailand (AOT TB) and MTR Corp (66 HK) are the main transport beneficiaries.


Singapore

ComfortDelGro Corporation Limited provides bus, taxi, car leasing and rental, automotive engineering, maintenance services, and diesel sales.  The Group also provides investment trading and operates vehicle inspection and assessment services, and advertising services.

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Comfortdelgro Corp (CD SP)

Gear 4 - The Tortoise and The Hare

Taxi, Bus or MRT, which is the best mode of transport/investment? ComfortDelGro ("CD SP") - Largest Market Cap, highly liquid and geographically...

Crispin Francis

SBUS hits Gear 3: the case of the mysterious BSEP loan!

Although small, illiquid and disregarded, SBUS fascinates us. We've written a heap of insights on it. Subscribers can view these in the Insight...

Crispin Francis

Digital disruption bifurcates traditional market segmentation

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their...

Bernard Leong

China Tourists Coming Back: Transport

Chinese tourists are permitted to travel overseas and the destination countries are prepared to welcome them but they are yet to be seen through my...

Henry Soediarko

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