OVERVIEW:
The counter is the world's second largest listed land transport companies with total flee size of over 46650 buses, taxis and rental vehicles. Business segments include bus, taxi, rail, car rental and leasing, automotive servicing, driving centers. Operation exists in 7 countries: SG, Aus, China, UK, Ireland, Vietnam and Malaysia.
HIGHLIGHTS:
[1] Its latest quarter registered 3~5% growth in revenue and net profit year on year. Major business segments, bus and taxi up 3%. Rail segment jumped 28%, mainly due to Downtown line operation.
[2] Earning contribution is well diversified across few countries:
[3] The counter is in net cash position of $400m. Total debt/equity is as low as <20%.
INVESTMENT THEMES:
[1] Current valuation: PE ~19 || PB ~ 2.5 || Dividend yield ~ 3.2% || Dividend growth > 8% pa
[2] The counter is deemed to be benefited from Bus Contracting Model of local authority. Although the model might not be implemented all at once, it would translate to high cashflow in the counter eventually.
PRICE TREND:
The counter has been riding uptrend throughout past 4 years. Its defensive business characteristic proved resilience towards various market turbulence in the the period. Current price is lingering at one year support ~2.71
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