SMRT and share prices

Major train disruptions happened in December 2011 in the financial year when SMRT was celebrating their 25 years of operation. Financial Year 2012 (FY2012) was reported for period 1 April 2011 to 31 March 2012.

How will FY2013 be like? Management already warned about possible loss in the final quarter of FY2013.

The following table shows performance based on FY2012 annual report.

  FY2012 FY2011
Net Profit $119.8 m $161.0 m
EPS 7.9 cents 10.6 cents
Dividends (Total) 7.45 cents 8.5 cents
Share price @ 31 Mar $1.74 $1.89

FY2012 was a poor year for SMRT on all accounts. Net profit was down, dividend was down. Share price was down too.

Let us see the share prices of SMRT for some dates:

Date Share price
14 July 2010 $2.32
15 December 2011 $1.81
31 March 2011 $1.89
31 March 2012 $1.74
4 April 2013 $1.54

At its recent peak in July 2010, share price was $2.32. On the date of the major disruption in the North South MRT Line, 15 December 2011, share price was $1.81. At year end 2011, share price went up slightly to $1.89. At year end 2012, share price went downhill to $1.74. After the announcement of possible loss in the final quarter of FY2013, share price went further south to $1.54. This was 15% drop from the major disruption in 2011.

Temasek Holdings held 54.23% of SMRT based on FY2012 annual report. It loses big on holding on this company, on paper.

I see no relief for SMRT until there is a fare increase to cope with higher salary costs and maintenance costs due to aging train system.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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