- We lower 2023F-2025F earnings forecast for ComfortDelGro by 10–12%. We expect ComfortDelGro's earnings to gradually improve in 2H23 amidst reductions in taxi rental rebates and benefits from the annual indexation of overseas bus contracts.
- - Read this at SGinvestors.io -
Key positives to look forward to.
- We see the following factors driving ComfortDelGro (SGX:C52)'s q-o-q earnings improvement:
- - Read this at SGinvestors.io -
- Singapore should continue to see improvement in ridership for rail,
- reduction in Singapore taxi rental discount from 15% to 10% starting 1 Apr 2023, and the scope to increase commission rates for taxi bookings (ComfortDelGro charges 5% vs 20% for Grab & Gojek), and
- eventual reduction of incentives offered to taxi drivers in China during 1Q23.
Strong balance sheet, reasonable dividend yield, and compelling valuation.
- Read more at SGinvestors.io.
Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-05-19
Previous report by RHB:
2023-04-04 ComfortDelGro - Electrifying Its Business; Keep BUY.
Price targets by 5 other brokers at ComfortDelGro Target Prices.
Listing of research reports at ComfortDelGro Analyst Reports.
Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividends & Corporate Actions,
ComfortDelGro News Articles
