Perak Transit beneficiary of MCO easing
KUCHING: AmInvestment Bank Bhd (AmInvestment Bank) believes Perak Transit Bhd (Perak Transit) is on the way to transforming unused areas of its existing terminals into a logistics hub.
It secured two tenants including third-party courier logistics and a fast-growing delivery superapplication startup, occupying 10-30% of terminal space for the Meru Raya and Kampar Putra Sentral terminals.
This helps to improve the terminal’s rental surface, footfall and therefore income from its IPTT operations.
“We expect the rental contribution from the Kampar Putra terminal to improve following the relaxation of movement restrictions, based on the resumption of footfall at the terminal once passengers and university traffic are reduced. return when interstate travel is authorized; and improving the terminal occupancy rate to 60% ”, commented AmInvestment Bank.
As a reminder, the commercial tenants of the terminal currently benefit from free rental within the movement control order (MCO).
AmInvestment Bank estimated that construction of Bidor Sentral remained on track and that pile work is expected to start at the end of this month. Bidor Sentral’s contribution to turnover should start in the second half of its 2021 fiscal year (2HFY23).
“For Terminal Management Contracts (TMC), we believe Perak Transit will continue to discuss with third-party bus terminals for potential new projects / contracts, although discussions may have slowed down at the start of the National Recovery Plan (PNR ).
“Regarding the existing contracts, we maintain our estimate that the Bas Shahab Perdana terminal should start operating by April 2022, while the revenues of the Sentral Kuantan terminal are stable, as the terminal management fees are paid annually. on a contractual basis. “
Going forward, the research firm believed Perak Transit was one of the beneficiaries of the relaxation of movement restrictions, in large part thanks to rising rental revenues from its IPTT segment as ridership recovers. ; improving revenues from the operation of service stations on the resumption of vehicle traffic; and the resumption of bus operations in accordance with the government’s decision to allow interstate travel. “
She continued to appreciate Perak Transit for its unique business model of operating modern public transport terminals that mimic airports with spacious, well-lit shops, restaurants and waiting areas, and clean public facilities. , especially the toilets.
These encourage visitors to spend more money and time in the terminal before they leave or arrive, or when sending or picking up loved ones. This captive traffic is monetized in the form of rental income from commercial premises and advertising space within the terminal;
“Perak Transit has proven the commercial viability of this business model in its Meru Raya terminal in Ipoh (an interstate transportation hub) and in the brand new Kampar Putra Sentral.
“Kampar Putra Sentral is also supported by a high and rapidly growing student population in the university town of Kampar. This student population has a strong propensity to travel during school holidays and festivities, as well as during weekends for leisure.