Land Transport - CGS-CIMB Research 2021-11-11: Implications Of SBS Transit Framework Agreement With LTA

Land Transport - Implications Of SBS Transit Framework Agreement With LTA

COMFORTDELGRO CORPORATION LTD (SGX:C52) | SGinvestors.ioCOMFORTDELGRO CORPORATION LTD (SGX:C52)
  • We are positive on SBS Transit (SGX:S61)’s latest framework arrangement with LTA regarding the Downtown Line (DTL) financing framework transition and extension of bus packages.
  • While we estimate the P&L impact to be rather neutral, the deal improves the company’s earnings stability, and paves the way for a higher dividend payout ratio in FY22F.
  • SBS Transit’s 3Q21 results were in line with our expectations, but ComfortDelGro (SGX:C52)’s came in slightly below.
    • SBS Transit saw a slight sequential net profit improvement in 3Q21 to S$13.9m (+5% q-o-q,-28% y-o-y) due to higher service revenue from fuel-indexation and better performance in commercial services.
    • ComfortDelGro’s 3Q21 core net profit of S$25.8m (-26% q-o-q, -34.0% y-o-y) was sequentially lower due to higher taxi rebates granted and negative impact on Australia’s charter bus business due to lockdowns.
  • Maintain Overweight; we expect earnings recovery in FY22F with mobility recovery.



Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.



ONG Khang Chuen CFA CGS-CIMB Research | Darren ONG CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-11
SGX Stock Analyst Report ADD MAINTAIN ADD 1.800 SAME 1.800




Read also CGS-CIMB's most recent report:
2021-08-27 ComfortDelGro - Kia Ora, New Zealand!

Target prices by 2 other brokers at ComfortDelGro Target Prices.
Listing of broker reports at ComfortDelGro Analyst Report.

Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividends & Corp Actions,
ComfortDelGro News Articles





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