BUSINESS:
The company is well known for its transport services in Singapore. Its business mainly consists of railway, bus, taxi, rental, advertising and engineering services.
OVERVIEW:
Amid of several train services disruption in last few weeks, the counter has experienced downfall in its shares price. Market might be worried over heavy fines being imposed by LTA. However, few positive factors are still valid for the company in near future. On last Feb, it hit $1.8 which was actually the peak over last three years. Over last two quarters, it has delivered strong earning results which show healthy grow in both revenue and profit.
UPWARD CATALYSTS:
(1) 2.8% fare increase will be effective on 5 April 2015.
(2) benefit from current low energy cost
(3) rental income contribution from Kallang Wave Mall on fiscal year 2016
(4) core bus operation to turn profitable from new bus contracting model from government
(5) involvement in several overseas projects
DOWNWARDS CATALYSTS
(1) Fines imposed for service disruption
CHART ANALYSIS:
$1.65 is a support line formed over past year. Even though EMA10 and EMA20 are pointing down, EMA200 still in upward movement. It could be good entry price for current price correction period.
SUGGESTION:
Buy ~$1.66 for potential price gain >$1.7 (short terms rebound) and >$1.8 (long term)
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