SGX:S61Transportation
SBS Transit (SGX:S61) Stock Faces Margin Pressure Despite Revenue Resilience
SBS Transit stock closed at SGD3.92 after earnings, with recent gains suggesting investors came in leaning optimistic. The headline from this quarter is not revenue, which was stable, but profit pressure. Net income for Q2 stood at SGD13.8m, which sits below recent quarters and keeps the trailing net margin near 3.8%. That is thin for a capital heavy transport operator. The market reaction now hinges on whether investors focus on that earnings squeeze or on the still rich 20.6x P/E and the...