Transport/SMRT

Transport/SMRT: Rail ridership continued to grow in July, rising 14% yoy boosted by the start of stage 1-2 of the Circle Line. Bus ridership also rose 5%. Still, SMRT earnings are expected to be dragged down by operating costs of CCL when stages 4 & 5 come online in 2H11 with continuing losses & increasing cost pressures. Valuations remains unattracive. DB maintains Sell with TP of $1.90, cites stock is already trading at a premium valuation of 20x P/E & offering pedestrian 3% earning growth.