ComfortDelGro - RHB Invest 2023-04-04: Electrifying Its Business; Keep BUY

• ComfortDelGro (SGX:C52) is poised to see benefits from the increased demand for its public transport and taxi services in 2H23. A recent survey showed that street-hailing taxis remain competitive vs private hire car rides.
• - Read this at SGinvestors.io -

Investing to electrify its business.

• In a recent The Strait Times article, outgoing chairman Lim Jit Poh suggested that ComfortDelGro will spend S$6bn to replace the bulk of its fleet of buses and taxis with EVs. He was also told that ComfortDelGro could consider getting into the distribution of EVs, a business it conducted before 2003.
• - Read this at SGinvestors.io -
• In its latest tender, ComfortDelGro is looking to secure 500 new petrol-electric hybrid taxis that are expected to be delivered from Nov 2023. The tender also comes with an option for another 500 hybrid taxis, with delivery no later than Oct 2025. The total of 1,000 hybrid taxis would account for ~11% of its fleet size.

Getting into electric vehicles (EV) and related businesses.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-04-04 SGinvestors.io

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