- We reiterate our positive view on ComfortDelGro (SGX:C52) for three key reasons, with continued earnings recovery and earnings upgrade by market consensus underpinning a further re-rate.
Why do we believe ComfortDelGro has more leg room to run?
- - Read this at SGinvestors.io -
- the worst being over for the public transport segment; and
- sensible bolt-on acquisitions to drive future growth.
1) Multiple levers in a growing Singapore P2P market
- We reiterate our prior view that the market’s view on the group’s taxi fleet as a profitability trend could be missing the picture. The shift towards commission sharing provides multiple levers for its taxi business to enjoy upsides, namely from fare increases, a higher number of rides, and higher proportion of ride hailing vs street hailing.
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- inspection frequency for taxis under three years old to be reduced from biannually to annually.
2) Worst is mostly over in the public transport segment
- Read more at SGinvestors.io.