Vriddhi Consulting

Punit Khanna

Independent Insight Provider

Equity Bottom-Up

<ul>
<li>Remains the number 1 bus company in Singapore with approx. 50% market share.</li>
<li>Runs 3 train lines and is bidding for the Cross Island line, which will span over 50 km. Tender expected to be in 4th quarter this year.</li>
<li>The company still has excess cash on its books after paying .32 cents in a special dividend.</li>
</ul>
        <div class="content-highlight">
        <h2>Raising Money for Persons with Disabilities in Singapore</h2>
        <p><strong><em>For your kind consideration</em></strong></p>
        <p><em>This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum.  We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.</em></p>
        <p><em>All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.</em></p>
        <p data-start="635" data-end="669">To contribute, <a href="https://www.giving.sg/donate/campaign/raising-money-for-special-needs-persons-in-singapore" target="_blank" rel="noopener">please visit this URL.</a> </p>
        </div>
        


Remains the number 1 bus company in Singapore with approx. 50% market share.
Runs 3 train lines and is bidding for the Cross Island line, which will span over 50 km. Tender expected to be in 4th quarter this year.
The company still has excess cash on its books after paying .32 cents in a special dividend.

        
        Raising Money for Persons with Disabilities in Singapore
        For your kind consideration
        This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum.  We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.
        All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.
        To contribute, please visit this URL. 
        
        

SBS Transit : Stable and a Slow Growth but Not Cheap at Current Prices

<ul>
<li>Revenue from the public transport business was down 1% in 2nd Half due to lower bus revenues. </li>
<li>Train ridership increased on both NEL and DTL, but train business does not make money</li>
<li>Business is becoming asset-light and the management has returned good things by returning excess cash to shareholders.</li>
</ul>
    <div class="content-highlight">
    <h2>Raising Money for Persons with Disabilities in Singapore</h2>
    <p><strong><em>For your kind consideration</em></strong></p>
    <p><em>This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum.  We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.</em></p>
    <p><em>All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.</em></p>
    <p data-start="635" data-end="669">To contribute, <a href="https://www.giving.sg/donate/campaign/raising-money-for-person-with-disabilities-empowering-visions-shaping-future" target="_blank" rel="noopener">please visit this URL.</a> </p>
    </div>
    


Revenue from the public transport business was down 1% in 2nd Half due to lower bus revenues. 
Train ridership increased on both NEL and DTL, but train business does not make money
Business is becoming asset-light and the management has returned good things by returning excess cash to shareholders.

    
    Raising Money for Persons with Disabilities in Singapore
    For your kind consideration
    This report has been prepared by Vriddhi Consulting, founded by Punit and Debjani Khanna. A portion of the research was contributed by Shubham Khanna, an individual on the autism spectrum.  We are grateful to Smartkarma for providing a platform to share this research and amplify its impact.
    All proceeds from the publication of this report will be donated to support people with disabilities in Singapore. If you find this report valuable, we invite you to support our campaign, “Raising Money for Persons with Disabilities in Singapore.” Every contribution directly benefits the Goh Chok Tong Enable Fund and qualifies for a 250% tax deduction for Singapore tax residents.
    To contribute, please visit this URL. 
    
    

SBS Transit : Dont Get Excited with Dividend as Its Capital Repayment and Not Earnings

Equity Long-Short

Mo Aziz

<ul>
<li>Earnings Down on Bus Drag Despite Cost Relief – FY25 net profit SGD61.2m (-13% YoY), Public Transport operating profit down 16% on lower bus revenue and higher rail licence charges. </li>
<li>Special Dividend Drives 253% Payout – Total DPS of 49.6 cents (including 31.99c special) implies a 253% payout ratio, signalling excess capital return rather than recurring earnings strength. </li>
<li>Risk-Reward Now Balanced – With shares trading close to our fair value of SGD3.90 (6% exit yield), and bus revenue headwinds persisting into 2026, we downgrade to Neutral.</li>
</ul>


Earnings Down on Bus Drag Despite Cost Relief – FY25 net profit SGD61.2m (-13% YoY), Public Transport operating profit down 16% on lower bus revenue and higher rail licence charges. 
Special Dividend Drives 253% Payout – Total DPS of 49.6 cents (including 31.99c special) implies a 253% payout ratio, signalling excess capital return rather than recurring earnings strength. 
Risk-Reward Now Balanced – With shares trading close to our fair value of SGD3.90 (6% exit yield), and bus revenue headwinds persisting into 2026, we downgrade to Neutral.


SBS Transit (SBUS SP): FY25 / 4Q25 Results Review

<ul>
<li>SBS Transit has de-rated during COVID, and has not recovered to pre-COVID's historical mean. </li>
<li>Management has revised its shareholder return policy to distribute all earnings as dividends, but the market has yet to re-rate accordingly. </li>
<li>Our TP of SGD3.90 is based on 6% FY26 dividend yield, SBS Transit offers a reliable income stream and stability, supported by its role in Singapore's transport system.</li>
</ul>


SBS Transit has de-rated during COVID, and has not recovered to pre-COVID's historical mean. 
Management has revised its shareholder return policy to distribute all earnings as dividends, but the market has yet to re-rate accordingly. 
Our TP of SGD3.90 is based on 6% FY26 dividend yield, SBS Transit offers a reliable income stream and stability, supported by its role in Singapore's transport system.


SBS Transit (SBUS SP): A Second Look at Valuations

<ul>
<li>SBS Transit is a mature, stable public transport operator in Singapore, serving as a key benchmark in the regional transport sector due to its established operations and comprehensive network.  </li>
<li>Despite operating in a saturated market, SBS Transit maintains a robust financial profile, characterized by stable earnings and a superior cash conversion cycle due to its advance payment model. </li>
<li>BUY with TP of SGD3.90 (6% FY26 dividend yield), SBS Transit offers investors a reliable income stream and stability, supported by its role in Singapore's highly urbanized transport system.</li>
</ul>


SBS Transit is a mature, stable public transport operator in Singapore, serving as a key benchmark in the regional transport sector due to its established operations and comprehensive network.  
Despite operating in a saturated market, SBS Transit maintains a robust financial profile, characterized by stable earnings and a superior cash conversion cycle due to its advance payment model. 
BUY with TP of SGD3.90 (6% FY26 dividend yield), SBS Transit offers investors a reliable income stream and stability, supported by its role in Singapore's highly urbanized transport system.


SBS Transit (SBUS SP | BUY | TP:S$3.92): Bussing for Dividends

Singapore

SBS Transit is a leading multi-modal public transport operator in Singapore, providing extensive bus and rail services. Its offerings include various bus services, the North East MRT Line, Downtown MRT Line, and the Sengkang and Punggol Light Rail Transit systems. The company is headquartered in Singapore and was founded in 1973 as Singapore Bus Services.

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SBS Transit (SBUS SP)

SBS Transit : Stable and a Slow Growth but Not Cheap at Current Prices

Singapore's top bus company maintains market dominance and stable business with excess cash but downside valuations risk

Punit Khanna

SBS Transit : Dont Get Excited with Dividend as Its Capital Repayment and Not Earnings

Public transport revenue down 1% in the 2nd Half, train ridership up, but it does not make a difference to bottomline. A special dividend is not...

Punit Khanna