"SMRT's profit up by 20% for FY2016 - CNA 28 April 2016"
Good for SMRT management and its shareholders that the company's FY2016 profit had increased by 22%. As a for-profit organization, this is to be applauded.
The questions are:
1. should it be a for-profit organization in the 1st place? should it not be a government service provider that work on breakeven with sinking fund for major structural assets replacement elements be included?;
2. the breakdown revealed that the rail business line ("BL") is lossmaking due to higher maintenance n repairs cost while rental of properties along n on its lines r making money. The risk is that the retails sector will not be as robust n it will increase pricing pressure! Also, the properties mkt has been quite lifeless n pointing to a sustained decline!;
3. dividend would be given. Just rewards for the shareholders, one of which is Temasek Holding where one believes. Are there many retails investors in SMRT? Probably not. So, it is a way for the government to take their grants and incentives, etc. back! Perfectly legal! The basis question is: why should the bonus be given since every one is really related with the government. This probably linked to item one above.
Anyway, profit is not the things commuters care about. They care about affordability, reliability, safety n comfort. That will determine if SMRT truly measure up.
Good for SMRT management and its shareholders that the company's FY2016 profit had increased by 22%. As a for-profit organization, this is to be applauded.
The questions are:
1. should it be a for-profit organization in the 1st place? should it not be a government service provider that work on breakeven with sinking fund for major structural assets replacement elements be included?;
2. the breakdown revealed that the rail business line ("BL") is lossmaking due to higher maintenance n repairs cost while rental of properties along n on its lines r making money. The risk is that the retails sector will not be as robust n it will increase pricing pressure! Also, the properties mkt has been quite lifeless n pointing to a sustained decline!;
3. dividend would be given. Just rewards for the shareholders, one of which is Temasek Holding where one believes. Are there many retails investors in SMRT? Probably not. So, it is a way for the government to take their grants and incentives, etc. back! Perfectly legal! The basis question is: why should the bonus be given since every one is really related with the government. This probably linked to item one above.
Anyway, profit is not the things commuters care about. They care about affordability, reliability, safety n comfort. That will determine if SMRT truly measure up.
No comments:
Post a Comment