ComfortDelGro - DBS Research 2022-08-15: Mid-Year Surprise 70% Payout & Special Dividend

• ComfortDelGro (SGX:C52) reported 1H22 attributable net profit of S$118.7m, equating to an improvement of 30.4% y-o-y, on the back of 6.7% increase in revenue to S$1.86bn. As of half-time, headline net profit accounts for 58% of our FY22F estimates.
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• 1H22 operating profit excluding disposals and government reliefs surged by a strong 67.6% to S$126.9m. 2H22 should show sequential improvement.
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Comments on ComfortDelGro's 1H22 segment results and takeaways from ComfortDelGro's earnings call

Public Transport segment revenue +8.1%, operating profit +48.4%.

• Revenue for the segment in 1H22 was at S$1.49bn (+8.1% y-o-y) mainly due to higher rail ridership and fuel indexation in Singapore. The strong operating profit growth was helped by its net gain on disposal of Alperton property in London and higher revenues. Excluding the disposal gain (S$37.2m), operating profit would still have been 3.8% higher at S$85.6m in 1H22.
• We noted that there were government reliefs amounting to S$47.9m in 1H21 for its Public Transport segment, which have dropped to S$8.1m in 1H22. Excluding disposal gain and government reliefs, operating profit in 1H22 would have been S$76.5m, more than doubled that of 1H21 (S$34.1m).
• Besides higher ridership and fuel indexation, public transport benefited from private charter projects in Singapore and the UK

Taxi – a brighter spot in Singapore.

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Andy SIM CFA DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-08-15 SGinvestors.io

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