ComfortDelGro - DBS Research 2026-07-17: Another Bus Package Loss For SBS Transit

• Singapore's Land Transport Authority (LTA) has awarded the Serangoon-Eunos Bus Package to SMRT, marking a transfer of operations from the incumbent operator, SBS Transit (SGX:S61).

• The package comprises 26 bus routes and attracted bids from SBS Transit, SMRT, and Tower Transit. SMRT emerged as the winning bidder with a tender price of S$600mil, approximately 5% below SBS Transit’s lowest bid.

SMRT’s bid came in the lowest at S$600mil

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Our views

• Given that SMRT submitted the lowest bid, the award outcome was less surprising than Go-Ahead's win of the Tampines Bus Package despite being the highest bidder. More notably, this is the first time LTA has explicitly highlighted cost savings under a new contract award, underscoring SMRT's increasingly aggressive bidding strategy.

• Following the loss of the Serangoon-Eunos Bus Package, SBS Transit now operates 6 of Singapore's 14 bus packages (43% market share), compared to 4 packages for SMRT (29%) and 2 packages each for Go-Ahead and Tower Transit (14%).

Estimated 1% impact to FY27F earnings.

• Read more at SGinvestors.io.

Zheng Feng Chee DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-07-17

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