ComfortDelGro - DBS Research 2024-05-15: Look Beyond 1Q Seasonal Variations

• ComfortDelGro (SGX:C52)’s 1Q24 reported net profit after minority interest (PATMI) of S$40.3 mn, +22.9% y-o-y, on the back of revenue of S$1,004.6 mn (+10.8% y-o-y).
• Revenue growth was driven by Public Transport, Taxi/ Private Hire Vehicle (PHV) and Other Private Transport segments, which increased by S$55 mn (+8% y-o-y), S$11.2 mn (+8.2%) and S$31.2 mn (+91.5%), respectively.

Strong y-o-y growth may be blunted by q-o-q seasonality drop

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• In addition, 1Q24 saw higher net interest income (+S$3.6 mn) from additional A2B dividends.
• On a q-o-q basis, PATMI registered 22.6% decline from 4Q23 which was largely attributed to seasonally weaker 1Q given shorter trading days arising from holidays, particularly for its Singapore and China Taxi/ PHV operations, and contract renewals in Australia at lower margins.

Public Transport segment revenue grew by 8% y-o-y

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• ComfortDelGro’s subsidiary, SBS Transit (SGX:S61), had submitted bids for Seletar bus package, and results are expected to be announced around Jun/ Jul 2024 with commencement on 16 Mar 2025. On the other hand, Jurong West bus package will be handed over to new operator (SMRT Bus) on 1 Sep 2024, and we have taken this into our estimates.

Taxi & PHV registered y-o-y revenue growth of 38.6%

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Fang Boon FOO DBS Group Research | Kee Yan YEO CMT DBS Research | https://www.dbs.com/insightsdirect/ 2024-05-15 SGinvestors.io

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