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CGS-CIMB sees 'bumpy road to recovery' for SBS Transit

Lim Hui Jie
Lim Hui Jie5/17/2021 4:5 PM GMT+08  • 3 min read
CGS-CIMB sees 'bumpy road to recovery' for SBS Transit
Despite a strong showing in 1Q21, analysts from CGS-CIMB have lowered their target price on SBS. Find out more.
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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.”

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