DBS lowers dividend forecast for capex-intensive SMRT

Expect just 2 Scts for FY14F.

"On the back of its continued capex needs, we now expect a lower dividend of just 2 Singapore cents for FY14F, down 20% from a year ago," said DBS, comparing it to the FY13 dividend of 2.5 Singapore cents.

DBS also warned investors that SMRT may not come out of its operational slump in the near future. SMRT reported a 57% yoy plunge in its net profit for its latest 2Q14 results due to higher operating costs.

"We maintain our cautious stance on this counter and do not see turnaround in operations as yet," said DBS.

The continued rise of operating costs even led the research firm to cut its FY14F/15F forecasts by 28%/25%, "largely on the back of a higher staff costs, and higher repair and maintenance costs."

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia