Equity Analysis /
Singapore

SG : SBS Transit Ltd - Steadily improving

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

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    CGS-CIMB
    10 August 2022
    Published byCGS-CIMB

    SBUS’s 2Q22 net profit of S$19m (+45% yoy) was in line, driven by strong rail ridership recovery as Singapore significantly eased Covid-19 restrictions. We expect further earnings recovery in 3Q22F, with further rail ridership improvement and higher revenue from other commercial services. Reiterate Add. We think SBUS is in a good position to raise its DPR by end-FY22F, given its strong balance sheet and cash generation capabilities.