- The Public Transport Council (PTC) has recently announced a 7% increase in public transport fares starting from Dec 23. This will bring in additional revenue of S$20.9m for ComfortDelGro (SGX:C52)’s subsidiary, SBS Transit (SGX:S61), and contribute directly to bottom-line profits.
- - Read this at SGinvestors.io -
- In view of improving rail and taxi ridership and a decent 4.7% dividend yield, we maintain BUY recommendation on ComfortDelGro with a higher target price of S$1.61 (S$1.56 previously).
No changes to taxi rental rebates and commission rates.
- - Read this at SGinvestors.io -
- As a recap, changes to the daily taxi rental rebate would be reviewed quarterly while the commission rate is reviewed monthly. We do not expect any near-term changes to the 10% daily taxi rental rebates given that ComfortDelGro’s daily taxi rentals are almost double that of peers.
- However, ComfortDelGro’s 5% online booking commission rate is considerably lower when compared to major competitors like Grab (20%) and GoJek (15%). We therefore expect potential upward revisions in 4Q23, closing in on ComfortDelGro’s peers.
Leaving COVID-19 behind.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Llelleythan Tan Yi Rong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2023-10-04
Read also UOB's most recent report:
2024-08-16 ComfortDelGro - Strong 2Q24 In Line, Boosted By A2B & UK Business.
Previous report by UOB:
2024-05-15 ComfortDelGro - 1Q24 Earnings Below Expectations; Downgrade To HOLD.
Price targets by 4 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