Shares of SMRT Corp Ltd fell to a five-month low
after the Singapore transport operator reported a 31 percent
fall in third-quarter net profit and brokers warned that its
earnings could be dragged further by higher expenses.
SMRT shares dipped as much as 2.4 percent to S$1.635, the
lowest since late August last year. Nearly 3 million shares
changed hands, 2.6 times the average full-day volume over the
past 30 days.
SMRT reported on Tuesday net profit of S$25.5 million ($20.7
million) for the three months ended December, down from S$37
million a year earlier, mainly hurt by higher staff, repair and
DBS Vickers expects SMRT's earnings to worsen and cut its
earnings estimates by 16 percent for the company's 2013 fiscal
year and by 25 percent for 2014. DBS reduced its target price to
S$1.30 from S$1.50 and kept its 'fully valued' rating.
DMG & Partners Securities said SMRT does not appear
attractive as the stock was trading at a 2013 price-earnings
ratio of 21 times, versus 15.9 times for its peer ComfortDelGro
"We think SMRT's share price faces limited upside with
concerns on cost pressures," the broker said, cutting its target
price on SMRT stock to S$1.55 from S$1.60 and maintaining
1041 (0241 GMT)
(Reporting by Eveline Danubrata and Teo Jion Chun; Editing
by Jijo Jacob; email@example.com; +65 6403
5669; Reuters Messaging:
10:11 STOCKS NEWS SINGAPORE-ThaiBev hits record as Fraser
and Neave eyed
Shares of Thai Beverage PCL jumped to a record
high as the company's chairman, Thai billionaire Charoen
Sirivadhanabhakdi, is inching closer to taking over Singapore
property and drinks group Fraser and Neave Ltd.
Thai Beverage shares rose as much as 7.1 percent to S$0.53,
with more than 57 million shares traded, 2.3 times the average
full-day volume over the past 30 days.
Charoen is set to gain control of F&N after amassing a 46.4
percent stake through TCC Assets Ltd and Thai Beverage since
July last year.
His offer for F&N shares that he does not already own, which
values the Singapore conglomerate at S$13.75 billion ($11.2
billion), will turn unconditional if the Thais secure a stake of
more than 50 percent.
Analysts say Charoen is likely to tap F&N's network in
Singapore and Malaysia to distribute Chang Beer, brewed by Thai
Beverage, as well as spirits, energy drinks and instant coffee.
In Thailand, where he already has an edge, Charoen may in turn
market F&N's brands.
0954 (0154 GMT)