SMRT

SMRT: Hosted analysts on a rare site visit to the Bishan and Kim Chuan depots as part of its efforts to convey the message that the company has turned itself around, with a set of preventative maintenance systems in place. CS was impressed by a “rail vision system” set that provides real-time, computerized montoring of its rail-track and third-rail. The newly installed system is able to scan the rail-tracks/ third-rail 6 times a day, and will likely be able to detect tract defects more quickly than traditional maintenance practices, providing additional response time ahead of potential failures. That said, CS is trimming target price to reflect capex increase of $160m over the next 2 years. CS has an underperform on SMRT with TP shaved to $0.98 from $1.05.