Company Insights: Featuring SBS Transit Limited and InnoTek Limited

Company Insights is a monthly webinar where we feature insights of 2 small and mid-caps companies in Singapore that you can potentially include in your watchlist.

Below are the highlights from the webinar on 24 February 2021.

• Rail segment loss-making but likely to become profitable as ridership on its Downtown Line ramps up over the next few years.

• Vaccine rollout in 2021 will help ridership recovery.

• Upward fare adjustments starting from 2021.

• COVID-19 a one-off interruption to steady growth over the past years.

• Asset-light business models = continue to churn out FCF.

• Easy-to-understand business model.

• Revenue slowdown but higher margins + turnaround in FCF.

• Turnaround by CEO Lou Yiliang who implemented cost savings.

• Significant ownership stakes by CEO; Chandaria family is involved in Venture Corp founding.

• Outlook to improve for their key markets – China's automotive industry + TV segment (home entertainment)

To gain more insights into their business structure and growth prospects, view the full webinar here: https://bit.ly/3qLbcBa