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

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

Singapore

SMRT Corporation Ltd. operates the Mass Rapid Transit (MRT) system and LRT (Light Rail Transit) system in Singapore.  The Company also provides bus, taxi, charter hire services, and consultancy and project management services.  SMRT Corporation rents taxis and leases commercial space, kiosks and advertising panels at the MRT and LRT stations as well as in train, buses, and taxis.

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SMRT Corp Ltd (MRT SP)

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)