SMRT Corporation - OCBC Investment 2016-03-31: Internal investigations still in progress

SMRT Corporation - OCBC Investment 2016-03-31: Internal investigations still in progress SMRT CORPORATION LTD S53.SI 

SMRT Corporation Limited: Internal investigations still in progress 

  • SMRT Corporation Ltd (SMRT) issued a statement yesterday stating safety procedures for track access have been strengthened immediately after the fatal accident on 22 Mar and internal investigations by SMRT into the cause of accident will be completed by next week. 
  • The findings will be reviewed by a panel of safety experts and members of SMRT Board Risk Committee, with the report to be subsequently handed over to the police and Ministry of Manpower for statutory investigations. 
  • SMRT will also set up a safety review committee to look into all safety-related matters in train operations, to be chaired by a SMRT board member and will include independent members. 
  • Again, recall that SMRT was fined S$1.3m back in Jul 14 for two safety breaches but with fatal consequences this time, we expect much more severe action to be taken against SMRT. 
  • Nonetheless, with investigations still ongoing, we keep our HOLD rating and FV of S$1.51 unchanged. 


Eugene Chua OCBC Securities | http://www.ocbcresearch.com/ 2016-03-31
OCBC Securities Analyst Report HOLD Maintain HOLD 1.51 Same 1.51


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......