Singapore’s Big Winner this Week: SMRT Corporation Ltd

One of the biggest winners in the local share market for the week was SMRT Corporation Ltd (SGX: S53). The land transport provider rose from S$1.21 last Thursday to close at S$1.33 yesterday, gaining some 10%. Over the same time frame, the broader market, as represented by the Straits Times Index (SGX: ^STI), went in the opposite direction.

On 17 September, SMRT’s shares went up 6.9%. This led stock market regulator, Singapore Exchange Limited (SGX: S68), to issue a query to get an explanation over the “unusual” price movements in its shares. In its reply, the transport outfit said that it is unaware of any information not previously announced concerning the firm, which might explain the trading. It went on to add that it will “make the necessary disclosures (if any) at the appropriate time”.

The next day, the firm announced that it had appointed Mr Colin Lim Fung Wan as the Managing Director of SMRT Services. He will look after the rail-related technical services and support functions on our shores and also overseas.

In a separate announcement on the same day, SMRT made public that it had incorporated two wholly-owned indirect subsidiaries here. They are SMRT Advertising & Properties Pte Ltd and The X Collective Pte Ltd.

SMRT Advertising & Properties is involved in “advertising activities and real estate activities with owned or leased property within the public transport network”, while The X Collective does “marketing and leasing of commercial spaces, retail management and operations, advertising and marketing, and digital and e-commerce”.

SMRT is currently trading at 23 times its historical earnings per share and has a dividend yield of 2.4%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.