ComfortDelGro - RHB Invest 2024-03-05: Strong End To The Year, More To Follow; Reiterate BUY

• We maintain that ComfortDelGro should see strong profit growth in 2024, aided by higher Singapore rail revenue, continued improvement in its UK public transport revenue, strong Singapore taxi earnings amidst the increase in fares and commission rates, as well as the introduction of a new fee for bookings on the Zig platform, improvement in its China taxi business, and contributions from recently announced acquisitions.

Strong 2023 results.

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• Excluding S$30.5m in one-off items from 2022, recurring PATMI was up 26.6%. ComfortDelGro continued to report a sequential improvement in PATMI during 2023.
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• Taxi & Private Hire (TPH) 2023 recurring EBIT surged by 52.4% y-o-y amidst lower rental discounts in Singapore and China, the introduction of platform fees for Singapore taxis on 1 Jul 2023, and y-o-y higher commission rates.
• See ComfortDelGro's dividends. The 2023 dividend came in at 6.66 cents, implying a payout ratio of 80%.

Outlook for Public Transport segment

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Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-03-05 SGinvestors.io

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