ComfortDelGro - RHB Invest 2023-05-19: Expecting Some Improvement In 2H23; Keep BUY

• 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:
  1. - Read this at SGinvestors.io -
  2. Singapore should continue to see improvement in ridership for rail,
  3. 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
  4. 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.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-03-03 ComfortDelGro - Growth To Remain Strong In 2025; BUY..

Previous report by RHB:
2025-02-04 ComfortDelGro - Working Towards Building A Global Presence.

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 Dividend Payout Dates & Corporate Actions,
ComfortDelGro News