SMRT Corporation Ltd: Upgrades planned for Bukit Panjang LRT system
- In light of the recent numerous disruptions and breakdown of services on the 15-year-old Bukit Panjang LRT (BPLRT) system, LTA and SMRT announced yesterday several measures to address reliability issues.
- These measures are expected to take six to nine months to implement and are expected to cost SMRT several millions (SGD) in doing so.
- In addition, SMRT will deploy more staff at BPLRT stations to ensure timely assistance and rectification of faults.
- LTA and SMRT are also on track to add 13 new train-cars to BPLRT by 3QCY15, as part of efforts to boost capacity in this mature estate.
- These additional repair & maintenance (R&M) and staff expenses in the near-term are within our expectations; recall that we had already factored in for higher R&M and staff costs in our report dated 9 Mar earlier this year.
- Hence, we keep our forecasts unchanged. Reiterate BUY with a FV of S$1.85, given the positive medium to longer-term catalysts.
- We think SMRT will see brighter days ahead when the details of the transition to the new rail financing framework are announced.
(Eugene Chua)
Source: http://www.ocbcresearch.com/
Source: http://www.ocbcresearch.com/
