bus service is a sunset industry because the modern transportation is now catching up.
Yes it is true that bus terminal is attached with major MRT's, and airports, but I know kampar area and I witnessed the quick deteriorating nature of bus service hub.
1) not all students will travel 'everyday'. The fact is, most only travel weekly, during weekends. And fancy students normally commute by LRTs, carpool, with bus as the last resort, as always. Not believe? Do a simple poll =) 2) most market is catered to locals who need to travel, say, from bidor to ipoh, from malim nawar to batu gajah, from kampar to ipoh. 3) monopoly. ok. Also monopoly in bus maintenance, you know how much that costs.
Think long term. Think whether the profit can catch up with deteriorating bus vehicles, and also factors such as increasing petrol price (you think oil keep dropping?), market sentiment (you think kampar 10% people take bus? Have you seen a full busload before? or empty bus always?).
But goreng, it's okay lo. Only react to market move.
Affin Hwang : Perak Transit (PT) presented at our conference yesterday. The key near term driver for PT is the opening of a new theme park, MAPS in June, which we expect to attract more tourists to Ipoh. Construction of Terminal Kampar is on track and will drive longer-term earnings growth. Maintain BUY and target price of RM0.31.
PTRANS recorded revenue of RM27.48 million and profit before taxation of RM8.85 million for the current financial quarter and revenue of RM90.18 million and profit before taxation of RM25.33 million for the FYE 31 December 2016. The profit before taxation of RM25.33 million for the cumulative 12 months ended 31 December 2016 had been arrived after listing expenses of RM2.15 million incurred during the current financial period under review. PTRANS’s revenue for FYE 31 December 2016 increased by approximately 21.66% compared to the previous FYE 31 December 2015 of RM74.12 million.
The major contributor to the PTRANS’s revenue during the current quarter and FYE 31 December 2016 was from the integrated public transportation terminal operations segment. PTRANS recorded revenue from this segment of RM37.01 million which accounted approximately 41.04% of the total revenue recorded for the FYE 31 December 2016.
PTRANS’s revenue from this segment improved by approximately 25.27% compared to the previous FYE 31 December 2015 of approximately RM29.55 million. This increase was mainly contributed by the increase in revenue from Project Facilitation Fee of RM4.23 million.
PTRANS’s revenue from bus operations segment improved from RM21.61 million during FYE 31 December 2015 to RM24.60 million in the current FYE 31 December 2016 mainly due to revenue generated from Stage Bus Service Transformation programme as the operation runs all the 19 approved routes since September 2016.
PTRANS’s revenue from petrol station operations and the management of ADO incentive programme improved from RM22.96 million during FYE 31 December 2015 to RM28.57 million in the current FYE 31 December 2016 mainly due to revenue generated from the commencement of the new petrol station at Lubok Merbau, Kuala Kangsar in August 2015.
There are no unusual or one-off gains/losses affecting the revenue or profit of the Group for the current FYE 31 December 2016. No comparative figures for the preceding corresponding quarter are available as this is the first interim financial report on the consolidated results for the financial quarter ended 31 December 2016 being announced by the Company in compliance with the Listing Requirements of Bursa Securities.
Prospects@PTRANS.
As disclosed in the Prospectus of the Company dated 15 September 2016, PTRANS has put in place a series of future plans in the following areas:
(i) Intend to develop integrated public transportation terminal in other parts of Perak and other regions in Malaysia. (ii) Plan to develop Terminal AmanJaya into a commercial and lifestyle hub. (iii) Intend to increase revenue from the rental of A&P space by adopting new A&P platforms and by increasing A&P space at Terminal AmanJaya. (iv) Plan to expand our bus services operations through the acquisition of new buses. (v) Intend to expand our network of bus services through the acquisition of new bus route permits.
The integrated public transportation terminal operations segment’s prospects is expected to be positive taking into consideration the revenue generated from its operations from Terminal AmanJaya, namely, rental of shops and kiosks as well as rental of A&P spaces. Terminal AmanJaya which is strategically located in Bandar Meru Raya, Ipoh and the surrounding commercial development in Bandar Meru Raya has the potential to attract visitors and passengers to Terminal AmanJaya. Further, the outlook of integrated public transportation terminal operations segment is expected to the favourable driven by the PTRANS’s plans for expansion in other part of Perak, whereby the construction of the Terminal Kampar has commenced and is expected to complete in 18 months time.
PTRANS’s bus operations segments outlook is also positive driven by Stage Bus Service Transformation programme as the operation runs all the 19 approved routes since September 2016.
There are no significant changes in product or service mix, no financial impact from recently completed acquisition, disposal or merger, no new regulations or rules, changes in business direction or new development which may have an impact to the Group’s operating activities or the prospects of the PTRANS’s operating segments. \ Barring any unforeseen circumstances, the Board is of the opinion that the prospects of the PTRANS’s financial performance for the financial year ending 31 December 2017 will remain favourable.
PTRANS recorded higher revenue for the current quarter as compared to the revenue in the preceding quarter mainly attributable to the recognition of project facilitation fee of RM6.90 million during the current quarter under review. Additionally, revenue generated from Stage Bus Service Transformation programme increased by RM1.47 million during the quarter as the operation runs all the 19 approved routes since September 2016.
The higher profit before tax for the current quarter was mainly due to income derived from the project facilitation fee where no additional terminal staff was hired for the activity and the terminal related cost are mostly fixed in nature.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Surewin123
12,593 posts
Posted by Surewin123 > 2017-05-01 16:45 | Report Abuse
confirmation bias. beware
bus service is a sunset industry because the modern transportation is now catching up.
Yes it is true that bus terminal is attached with major MRT's, and airports, but I know kampar area and I witnessed the quick deteriorating nature of bus service hub.
1) not all students will travel 'everyday'. The fact is, most only travel weekly, during weekends. And fancy students normally commute by LRTs, carpool, with bus as the last resort, as always. Not believe? Do a simple poll =)
2) most market is catered to locals who need to travel, say, from bidor to ipoh, from malim nawar to batu gajah, from kampar to ipoh.
3) monopoly. ok. Also monopoly in bus maintenance, you know how much that costs.
Think long term. Think whether the profit can catch up with deteriorating bus vehicles, and also factors such as increasing petrol price (you think oil keep dropping?), market sentiment (you think kampar 10% people take bus? Have you seen a full busload before? or empty bus always?).
But goreng, it's okay lo. Only react to market move.