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Yahoo
6 days ago
- Business
- Yahoo
Looking to Cut Cost? Try these 3 Singapore Transportation Stocks
If you are feeling the pinch, you're not imagining it. Last December marked the fourth successive year of public transport fare increases hitting Singapore commuters. In all likelihood, you won't see the last of these hikes, as fares are reviewed annually based on a formula that accounts for wages, energy costs and the general operating costs of public transport. Some of you might lament about the increase, while others may just accept it. But what if I told you there's a third option? You can invest in these land transport companies, which have historically paid out decent dividends. This move will not only mitigate the increase but also might help you recoup part of your transport expenses. SBS Transit (SGX: S58) SBS Transit is the largest bus operator in Singapore with about 200 bus services. It also operates rail services for the North East Line, Downtown Line, and Sengkang and Punggol LRT systems. Revenue and net profit for the past three fiscal years (FY) have stayed relatively stable at around S$1.5 billion and S$70 million respectively. However, its revenue might decrease this year, due to the expiry of the Jurong West bus package last August. The numbers from its 1Q 2025 business update partly reflect that. The quarter's revenue declined by 4.7% year-on-year (YOY) to S$374 million and profit after tax dropped by 6.1% YOY to below S$16 million. Despite this decrease, it will still be a solid set of results if the company can sustain this performance for the remaining year. But what about investors? Can SBS Transit maintain last year's generous ordinary dividends of S$0.2027? It might, but it's important to note that even excluding the one-off special dividend (derived from the sale of the Soon Lee bus depot), last year's payout ratio for the ordinary dividends was unusually high at 90%. In layman's terms, SBS Transit paid out 90% of its profits. Hence, it's more prudent to project using the minimum of the company's stated dividend policy of paying out at least 50% of profit attributable to shareholders. Annualising its 1Q 2025 results, SBS Transit estimated earnings per share for the year will be around S$0.20, resulting in at least S$0.10 in dividends per share. At the current trading price of S$2.95, this provides a decent yield of close to 3.5%. Vicom Limited (SGX: WJP) What if you drive more often than take public transport? Then, Vicom is likely a familiar name. Being a duopoly in the vehicle inspection sector, and commanding over 70% market share, Vicom's position provides it with reliable revenue. Additionally, it has a non-vehicle testing segment which also contributes positively to the company's profitability. This resilience is evident from the strong set of numbers it achieved for the past five years. While the growth in its revenue and earnings are not spectacular, compounding annually at a rate of about 8.4% and 4.6% respectively over the five years is respectable. Furthermore, the business has a return of equity of around 20%, a ratio that is nothing to scoff at, especially when it doesn't carry any debt on its books. The momentum continued into 1Q 2025, where its top and bottom lines grew by an impressive 18.9% and 7.5% respectively, partly driven by the ongoing ERP 2.0 On-Board Unit (OBU) project. Additionally, it generated almost S$11 million of cash from its operating activities, resulting in an increase of its cash and equivalents to S$65 million. Consequently, Vicom is likely able to sustain its trailing dividend of S$0.058 per share, which translates to a decent yield of almost 4% at the current trading price of around S$1.52. This yield could be sustained despite the upcoming capital expenditure (capex) of S$50 million this year. The capex is primarily for the development of the new Jalan Papan integrated testing centre, which is expected to be operational in 1H 2026. Not only does the new site replace the Pioneer vehicle inspection centre, it will also provide its non-vehicle testing business with new testing capabilities. Upon the completion of the construction and development of Jalan Papan site, capex should normalise from FY 2026. In turn, Vicom should then see an increase in net cash flow in subsequent years with the potential for higher dividends from FY 2026 onwards. ComfortDelGro Corporation (SGX: C52) So far, you have heard about SBS Transit and Vicom. But there's another compelling option to consider: ComfortDelGro, or CDG. This land transport giant serves as the parent company to both, owning approximately 74% and 67% of SBS Transit and Vicom respectively. For investors, this high ownership means a large portion of the profits generated by SBS Transit and Vicom directly contribute to CDG's overall profitability and bolsters its financial strength on the balance sheet. Beyond its public transport and inspection pillars, CDG also commands the largest fleet of taxis in Singapore. Together with its private hire fleet, this segment has seen a notable improvement in its profit margin in recent years. However, the most exciting development for CDG is its significant international expansion over the past year. Besides winning bus and rail tenders, CDG also strategically acquired the CMAC Group and Addison Lee Group in the UK, along with A2B Australia Limited. This aggressive expansion has been accretive to the Group's overall results. The impact of this global strategy became evident in 1Q 2025. For the first time in the group's history, its overseas segment contributed more than 50% to the total group revenue, surpassing the Singapore segment. This diversified base, new contracts, and acquisitions propelled CDG's 1Q 2025 revenue and profit up by approximately 16% and 19% respectively. If CDG can sustain this robust performance for the remainder of the year, it's highly probable that the company can at least maintain its trailing dividend of S$0.0777 per share. This translates to an attractive yield of approximately 5.4% based on the current trading price of around S$1.43. So what's the catch, you may ask? Indeed, these substantial acquisitions have tipped CDG's balance sheet from a net cash position to a net debt position of about S$390 million. However, this debt level, resulting in a net gearing of just 11.2%, is considered highly manageable given the group's strong and consistent operating cash flow. This strategic leveraging is a calculated move to fund future growth, positioning CDG for continued strong performance. Get Smart: Beyond the land transport companies While SBS Transit, Vicom, and ComfortDelGro offer unique exposures to Singapore's transport sector, the investing principle is rooted in fundamentals. The key is to seek out quality companies that demonstrate consistent profitability and a commitment to sustainable dividends. Such investments can indeed help to mitigate rising living costs, including your transport expenses, by providing a steady stream of income. Ready to discover the next $100 billion stock? Our newest FREE report dives deep into five popular SGX companies that many say are the next big thing. Read our team's findings to guide your investment strategy. Click the link here to download now. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Chan Kin Chuah owns shares of ComfortDelgro and Vicom. The post Looking to Cut Cost? Try these 3 Singapore Transportation Stocks appeared first on The Smart Investor. 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AsiaOne
15-07-2025
- Automotive
- AsiaOne
More seats, better air-con systems: New two-car trains debut on Sengkang-Punggol LRT Line, Singapore News
The first of two new light rail vehicles (LRV) for the Sengkang-Punggol LRT (SPLRT) line began its first passenger service on Tuesday (July 15) where it completed three loops over the course of an hour in the afternoon. The two new trains will ply the 14-station line, and will be deployed to the Punggol West Loop and Punggol East Loop over the two upcoming weekends, announced the Land Transport Authority (LTA) and SBS Transit. They will then be deployed for weekday service towards the end of July. These trains are part of the 25 new third-generation LRVs which will be progressively introduced into passenger service beyond the third quarter of 2025 after comprehensive testing and commissioning. Come end 2028, the SPLRT fleet will consist 33 two-car LRVs, which will increase passenger capacity to meet ridership demand, LTA and SBS Transit said. Speaking with the media at the first train's maiden voyage at Punggol station, Senior Minister of State for Transport Sun Xueling shared that residents of Punggol and Sengkang "have been looking forward to this development for many years now". Fellow Punggol MPs were also present at the launch, including Deputy Prime Minister Gan Kim Yong, Senior Minister of State of Sustainability and the Environment Janil Puthucheary and Yeo Wan Ling. Sengkang GRC MPs Theodora Lai and Bernadette Giam were also at the event, along with Jalan Kayu SMC's Ng Chee Meng. The new two-car trains promise a smoother and more comfortable journey, with more seating capacity and ergonomic seats, Senior Minister of State Sun stated. This is on top of brighter and more energy-efficient LED lighting, clearer LCD passenger information displays, new door-closing indicator light strips, as well as improved air-conditioning systems, according to LTA and SBS Transit. In the event of emergencies, the new LRVs also have inter-car doors to facilitate safer and quicker passenger evacuation. "As part of the replacement for the new train fleet, we will see the expansion of the depot," Sun added. "There could be some disruption to the services in the meantime, and we hope for the consideration of residents in Punggol and Sengkang." Expansion of the depot will include a physical size increase from 3.5 to 11.1 hectares to accommodate the operation of a larger LRV fleet. Two new reception tracks will reduce LRV launch times and three additional traction power substations will cater to the higher power demand of the new LRVs. There will also be service adjustments along stretches of the SPLRT line to facilitate these depot expansion works which are on track for completion by 2027. [[nid:719791]] khooyihang@
CNA
15-07-2025
- Automotive
- CNA
New two-car trains begin service on Sengkang-Punggol LRT Line
SINGAPORE: The first two of 25 new trains have entered service on the Sengkang-Punggol LRT line, the Land Transport Authority (LTA) and SBS Transit announced. After their first day of service on Tuesday (Jul 15), the new two-car trains will initially operate on the Punggol West and East loops over the next two weekends, before being deployed for weekday service towards the end of July. The remaining 23 trains from the fleet will arrive progressively and will enter passenger service from the third quarter of 2025. Each two-car train will be able to carry about 200 passengers. By the end of 2028, these third-generation trains will fully replace the existing first-generation fleet, which currently comprises 25 one-car and eight two-car trains. Eight second-generation two-car trains will remain in operation. Once the transition is complete, the Sengkang-Punggol LRT will have a fleet of 33 two-car trains, increasing passenger capacity to meet ridership demand, LTA and SBS Transit said. "Residents of Punggol and Sengkang have been looking forward to this development for many years now," Senior Minister of State for Transport Sun Xueling said on the sidelines of the launch. "We hope for the residents' consideration as we seek to improve transport connectivity," said Ms Sun, who is also a Member of Parliament (MP) for Punggol Group Representation Constituency (GRC). Ms Sun was joined at the launch by fellow Punggol MPs: Deputy Prime Minister Gan Kim Yong, Senior Minister of State of Sustainability and the Environment Janil Puthucheary, and Ms Yeo Wan Ling. IMPROVED FEATURES The new trains have ergonomic seating, improved air-conditioning systems and indicator light strips for clearer door-closing alerts. They also include operational upgrades such as an onboard touch-screen diagnosis panel for quicker fault detection during testing and maintenance, as well as easier access to equipment for staff. The new trains are also equipped with inter-car doors to facilitate safer and quicker passenger evacuation during emergencies. To support the larger fleet, the Sengkang-Punggol LRT depot will be expanded from 3.5ha to 11.1ha, to provide additional stabling and maintenance facilities. To facilitate these depot expansion works, service adjustments will be required along select stretches of the Sengkang-Punggol LRT line, LTA and SBS Transit said. More details will be announced at a later date.
Independent Singapore
04-07-2025
- Independent Singapore
Toilets at Chinatown MRT 'filthied within the hour' despite regular cleaning: SBS Transit
Photo: from Shutterstock SINGAPORE: A woman who visited the public toilets at Chinatown MRT station last month was left appalled by their unhygienic condition. SBS Transit has since responded to concerns about hygiene by revealing that the toilets get dirtied despite regular cleaning. The woman shared photos of the toilets with Stomp showing unflushed toilets, overflowing bins, and floors strewn with soiled toilet paper. 'The floor was still littered with toilet tissues as of yesterday,' the woman said, 'It is a shame to see the filth daily.' She noted that Chinatown is a major tourist attraction, and the toilets see heavy usage throughout the day. SBS Transit spokesperson Grace Wu has since acknowledged the feedback and said the operator is committed to maintaining high standards of cleanliness across all stations. 'SBS Transit is committed to providing comfortable and pleasant travel experiences for our commuters — and this includes maintaining the cleanliness of our trains, stations, and facilities such as toilets,' Ms Wu said. According to SBS Transit, the toilets at Chinatown MRT station, which sits along the North East Line, are cleaned daily at intervals averaging every three hours. 'On Friday, June 20, a scheduled cleaning session was carried out at 5 p.m. Regrettably, the toilet was dirtied within the hour, as reflected in the photographs,' the spokesperson explained. She added that the company is reviewing additional measures to improve the upkeep of the facilities but appealed to the public to do their part. She said, 'While we are reviewing additional measures to improve cleanliness, we also appeal to users to be considerate and responsible. Everyone plays a part in keeping shared spaces, such as toilets, clean and comfortable for others.'
Straits Times
20-06-2025
- Business
- Straits Times
ComfortDelGro to move its corporate headquarters to Labrador Tower in November
The move comes as the lease on ComfortDelGro's long-time base in Braddell Road (above) expires in August 2026. ST PHOTO: KUA CHEE SIONG ComfortDelGro to move its corporate headquarters to Labrador Tower in November SINGAPORE - Transport giant ComfortDelGro will move its corporate headquarters to Labrador Tower, a new office building in Pasir Panjang, The Straits Times has learnt. The move, which will take place in November, comes as the lease on the mainboard-listed company's long-time base in Braddell Road expires in August 2026. A ComfortDelGro spokesperson confirmed in a statement to ST on June 20 that the company will relocate its corporate functions to Labrador Tower. It will join the Ministry of Health and insurer Prudential Singapore as tenants at the 34-storey mixed-use project, which was developed by utilities company SP Group and completed around mid-2024. ComfortDelGro did not specify the number of employees or the departments that will move , but ST understands they include those in finance, IT, human resources, legal, business development, as well as branding and corporate communications. 'This move is part of our ongoing efforts to create a more modern and sustainable work environment for our corporate staff,' the company said, noting the new office's proximity to Labrador Park MRT station on the Circle Line. Asked how much office space it will be leasing at Labrador Tower and why it chose to move its corporate head office there, ComfortDelGro's spokesperson said it was unable to provide more details at this time. The ComfortDelGro G roup had more than 12,400 employees in Singapore in 2024, with its subsidiary, public transport operator SBS Transit, accounting for more than three quarters of the workforce here. Chinese-language daily Lianhe Zaobao broke the news on June 15 that ComfortDelGro and SBS Transit will vacate their premises at 205 Braddell Road progressively from October. While ComfortDelGro's corporate staff will move to Pasir Panjang, SBS Transit - which has been based in Braddell since 1980 - will relocate to its other existing bus and rail premises. By end-2025, SBS Transit will move its office staff to Sengkang Rail Depot and Sengkang West Bus Depot, and its bus operations in Braddell to Hougang Bus Depot in Defu. For cabbies, ComfortDelGro said its maintenance workshop on its Braddell Road premises will continue to serve taxi drivers in the central region until a new five-storey automotive hub in Ubi opens in the first quarter of 2026 to take its place. Neither ComfortDelGro nor SBS Transit have said why they did not renew or extend the lease on the Braddell site, which remains zoned for 'transport facilities' use, according to the Urban Redevelopment Authority's 2019 Master Plan. Industrial developer JTC Corporation owns the 66,441 sq m plot of land , which is located next to the CTE. At present, it houses a range of facilities, including office space, workshops, diesel pumps and electric vehicle charging stations. Join ST's WhatsApp Channel and get the latest news and must-reads.
