Are they waiting for the price wars to end before throwing their hat in with the winner? If not, they seriously need to aggressively implement overhauls to their strategy or consumers will just lose confidence.
I do think the government will step in if things get too bleak though.
chairman seems not enterprising and bold enough. they are up against grab wa lao.
hired retired auditor onto board? accountant to join sbs, which nv had accounted before? Vicom has been in vehicle technical testing all the while and now then a specialist join the board?
And sounds like they could be going into low margin acquisition, taking more debts, just to shore up the numbers.
And parting words of commuters need to balance expectation w cost of delivery. Again doesnt sound comforting.
Reply to @CS_Jacky : Thanks Jacky for sharing your thoughts. I have similar thoughts too after reading the article. And looking at the few recent overseas and local acquisitions they made, I wonder how are the profit margins like for each of these acquisitions? If profit margins of each of these acquisitions are lower than their existing group's profit margin, as you said it could still shore up their revenue and earnings but at the expense of taking on a net debt position on new low margin projects.
Therefore, even if there maybe short term boost to their growths going forward, the growth rate on a long term basis may taper off back into low single digits again if profit margins of new acquisitions are lower than existing businesses and drags down the overall profitability for the long term while balance sheet would have turned from net cash to net debt position.
Are they waiting for the price wars to end before throwing their hat in with the winner? If not, they seriously need to aggressively implement overhauls to their strategy or consumers will just lose confidence.
I do think the government will step in if things get too bleak though.
this interview doesnt inspire confidence.
chairman seems not enterprising and bold enough. they are up against grab wa lao.
hired retired auditor onto board? accountant to join sbs, which nv had accounted before? Vicom has been in vehicle technical testing all the while and now then a specialist join the board?
And sounds like they could be going into low margin acquisition, taking more debts, just to shore up the numbers.
And parting words of commuters need to balance expectation w cost of delivery. Again doesnt sound comforting.
I am left w more doubts after reading.
My opinion.
Reply to @CS_Jacky : Thanks Jacky for sharing your thoughts. I have similar thoughts too after reading the article. And looking at the few recent overseas and local acquisitions they made, I wonder how are the profit margins like for each of these acquisitions? If profit margins of each of these acquisitions are lower than their existing group's profit margin, as you said it could still shore up their revenue and earnings but at the expense of taking on a net debt position on new low margin projects.
Therefore, even if there maybe short term boost to their growths going forward, the growth rate on a long term basis may taper off back into low single digits again if profit margins of new acquisitions are lower than existing businesses and drags down the overall profitability for the long term while balance sheet would have turned from net cash to net debt position.
Hmmm, their strategy doesn't make sense leh, is that market cannibalism, killing your own taxi biz?