ComfortDelGro - Maybank Research 2023-11-15: Staying On Track; 3Q23 Results In Line

• ComfortDelGro (SGX:C52)'s 3Q23 PATMI of S$49.9m (+9.2% q-o-q; +54.5% y-o-y) was broadly in line with our and market expectations. 9M23 core earnings rose 9.6% y-o-y to S$128.4m, or about 75%/72% of MIBG/consensus full-year estimates.
• - Read this at SGinvestors.io -

Public Transport continues to improve q-o-q

• In 3Q, Public Transport revenue/EBIT grew 3.9%/13.8% q-o-q to S$758.5m and S$32.9m, respectively.
• Notably, UK operation returned to the black with operating profit of S$6.1m on further indexation and higher margin contract renewals.
• In Singapore, its 74.4%-owned SBS Transit (SGX:S61) retained the Bukit Merah bus package and LTA has the option to extend the contract by between 2-5 years at the end of the 5-year term from Apr 2024. Singapore’s Public Transport Council announced a fare increase of 7.3%, effective 23 Dec 2023, which should help partially offset the higher energy costs.

Demand for Taxi & Private Hire remains high

• - Read this at SGinvestors.io -
• That said, Singapore booking volumes remain stable at 8.1m, unchanged from the previous quarter. Even as demand for ride-hailing trips remains high, competition is rising as other key players like Grab and Gojek recently adjusted their commission fee structures.
• ComfortDelGro has around 5,500-6,000 private hire drivers (~30% active) and has no immediate plan to raise its commission rate of 5%.

Exploring opportunities with its huge war chest

• Read more at SGinvestors.io.

Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2023-11-15 SGinvestors.io

---