- ComfortDelGro (SGX:C52)'s FY23 earnings beat expectations at 117% of our forecast. Revenue was within our estimates at 98%. 4Q23 PATMI jumped 77% y-o-y to S$49.3mil.
- The turnaround in UK bus operations and growth in Singapore and China taxi operations were the major drivers of earnings.
- - Read this at SGinvestors.io -
- UK bus indexation and re-contracting;
- Increased taxi fleet size in China;
- Margin recovery for Singapore rail operations as operating cost stabilises, rail passenger numbers grow and lagged re-pricing of fares.
- Maintain BUY rating for ComfortDelGro with a higher target price of S$1.63 (previously S$1.57)
The Positive
Jump in China taxi earnings.
- - Read this at SGinvestors.io -
The Negative
Meagre rail earnings.
- Read more at SGinvestors.io.
