- We raise FY23-25 earnings forecast for ComfortDelGro by 2-3% to account for lower taxi rental rebates and the introduction of a new platform fee for taxi and private-hire bookings on ComfortDelGro’s platform Zig – these should lead to slightly higher taxi revenue. We continue to expect ComfortDelGro's earnings to gradually improve in 2H23 amidst benefits from the annual indexation of overseas bus contracts.
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- A near-term overhang remains from the risk of losing the Bukit Merah and Jurong West bus packages (not our base case expectation).
Expansion into green energy, taxi, and vehicle inspection businesses in China.
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- The partnership will include investments in the construction of automotive electric charging and swapping stations, as well as ancillary solar photovoltaic and energy storage systems to support the charging and swapping business. Their initial joint project will be to deliver 60 chargers with 3,600kw capacity to cater to the needs of municipal buses and cars in Guangzhou, China.
- Earlier in April, the two companies had also signed a MoU to collaborate as partners in the taxi business in China.
- On 25 Jun, ComfortDelGro also signed a MoU with Chengdu Hexintong Vehicle Inspection Company to cooperate on a vehicle inspection centre in Chengdu. The centre has the capacity to conduct inspections for up to 80,000 vehicles a year. Significantly, the centre will be only one of three centres in Chengdu that can conduct inspections for all types of vehicles.
Positive outlook for ComfortDelgro
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