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KTB- Superb cost beneficial from latest diesel Price, diesel price drop by 34% since 2015 July

Gowin212
Publish date: Thu, 04 Feb 2016, 12:03 AM

 

KTB operating in a very challenging business environment i.e. a crowded market of more than 260 express bus companies and 165 stage bus companies for a small country. It is such an intense competition with many bus companies plying the same routes with almost similar trip schedules. This factor, together with the ever-increasing cost of operations, has hindered the competitiveness of the industry. Against the backdrop of external factors and industry restrictions,  For express operations, we carried 5.7 million passengers and for the stage operations, 13.3 million. In the midst of the challenging business environment, the company strived to maintain its position in the industry in the safety aspect of its bus operations. Ktb started implementing the Safety, Health and Environment Code of Practice in 2007 and now, Ktb buses are regarded as the safest in the country. Over the past year, Ktb had pursued innovation and new technologies in the express bus sector for enhanced passenger comfort and safety levels. Public transport is a service industry, as such, company always have to evaluate and improve their offerings to the public that the others are not able to provide. Diesel Price Drop by 34% since 2015 July, from RM2.05 to RM1.35 and no one is talking about it, We would expect to see the company profit margin will improve significantly by next quarter .

As a reminder, the company already called on the government to increase bus fares to cushion increasing operational costs experienced by bus companies on Dec 31. "The government had approved for a 22.6% hike in bus fares to be implemented in 2015 May, but pulled it back due to the increase in cost of living," Which mean the bus fares re-adjustment are still pending by the government, after a signing ceremony between Nadicorp Holdings Sdn Bhd and the Malaysian Rubber Board for the trial use of environmental-friendly rubber tyres.

 

 

Current price :RM0.21

Target price  : RM0.30

2nd Target :  RM0.38

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1 person likes this. Showing 3 of 3 comments

Mohd Fahmi Bin Jaes

Avoide this stock. Gov.will not increase ticket price otherwise rakyat will hentam

2016-02-04 02:56

feimah

Most of these buses company got fuel subsidy from gov.
Gov will pull back the subsidy when their profit improve.

2016-02-04 09:55

kakashit

yalor, dunno Uber do long distance travel or not

2016-02-05 10:13

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