CGS-CIMB’s Ong Kang Chuen and Darren Ong have maintained their “add” call on SBS Transit, but with a reduced target price of $3.50, down from their previous figure of $3.60. 

The analysts note that the company posted a “strong set” of 1QFY2021 results, with net profit coming in at $23.3 million, which is 14% lower q-o-q, but a whopping 109% higher y-o-y. This is “in line” with their previous FY2021 forecast.

The duo also highlights that SBS’s topline was weaker than expected, coming in at 6.5% lower y-o-y, as it was “dragged by lower rail ridership and advertising revenue... but this was offset by stronger-than-expected cost control.”

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook