ComfortDelGro - RHB Invest 2024-01-12: Upbeat On Recent Developments; Keep BUY

• ComfortDelGro recently announced two developments that should strengthen its earnings ahead:
  1. It plans to acquire 90.75% of A2B Australia (A2B) at AUD1.45/share (~S$150m); and
  2. - Read this at SGinvestors.io -
• The A2B acquisition and higher commission rate should lift ComfortDelGro's FY24-25 earnings by 2-4% and 4-5%.

Acquisition of the remaining stake in A2B Australia.

• The announced transaction values A2B, a company that primarily facilitates taxi bookings, trips, and payments, at AUD182m or S$163.3m (on a fully diluted basis). The acquisition will be funded through existing cash and bank facilities.
• We assume 75% of the value will be funded by debt, and the transaction – which requires multiple approvals – will only be completed by the end of 1H24.
• - Read this at SGinvestors.io -
• payment processing fees for non-cash taxi payments.
• The company has seen steady improvement in profit with a FY22 (Jun) EBITDA of AUD20m, which is still well short of the AUD36m EBITDA reported before the pandemic.

Increase in Singapore taxi commissions.

• 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:
2025-11-17 ComfortDelGro - UK Unit Registers Strong Growth; Stay BUY.

Previous report by RHB:
2025-10-16 ComfortDelGro - Higher Public Transport Fares In Singapore; Still BUY.

Price targets by 3 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