- ComfortDelGro (SGX:C52)’s 3Q22 PATMI of S$34.3m (+32.9% y-o-y; -18.3% q-o-q) came in below our and street expectation with 9M22 earnings of S$153m forming around 71% of MIBG/consensus full-year estimates.
- - Read this at SGinvestors.io -
- We trim FY22-24E EPS forecast for ComfortDelGro by 15% and lower our DCF-based target price to S$1.60 (WACC: 8.3%, LTG: 1%).
Overseas operations face near-term challenges
- ComfortDelGro's revenue for Public Transport Services rose by 8.7% y-o-y to S$772.5m in 3Q22 (flattish q-o-q) as higher turnover from improving ridership and fuel indexation were mostly offset by FX impacts in Australia and UK.
- - Read this at SGinvestors.io -
- Management claimed the margin pressure was due to driver shortage across all operating geographies, and the time lag to pass on higher costs (its public bus service fees only see indexation from wage and CPI on an annual basis).
Taxis and private hire vehicles remain a bright spot
- Read more at SGinvestors.io.
