Equity Long-Short

Mo Aziz

Capital markets veteran with 25 years across sell-side and buy-side research, investor relations, and fund management. Currently publish independent equity research (Mofferies Investment Research, via Smartkarma) spanning semiconductor memory (DRAM/NAND/HBM), foundry, semiconductor equipment and advanced packaging, gold and cross-asset strategy, financials forensics, and APAC IPOs — with a standing watchlist of 190+ companies across 41 countries. Background includes deep aviation-sector expertise (airlines, airports, OEMs, lessors, air cargo, travel/OTAs). Approach centers on identifying cyclical inflection points and mispriced risk across sectors, translated into explicit, actionable calls.

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

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

Equity Bottom-Up

<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