ComfortDelGro - Maybank Research 2024-05-15: Cruising Along; 1Q24 Earnings In Line

• In view of the seasonal weak 1Q, we deem ComfortDelGro (SGX:C52)'s 1Q24 core PATMI of S$40.6m (+23.8% y-o-y) to be roughly in line with our and market expectations (which forms around 20%/19% of MIBG/consensus’ full-year estimates).
• - Read this at SGinvestors.io -

Rising operating expenses a challenge for public transport

• 1Q24 public transport revenue rose 8% y-o-y to S$741.1m on improved Singapore rail ridership and fare increases, as well as UK bus renewals & indexation but offset by 1Q low season for intercity coach businesses in the country.
• EBIT of S$23.8m (+3.5% y-o-y) was however, dragged by higher operating expenses, and public bus contracts in Australia were renewed at lower margins.
• ComfortDelGro's 74.4%-owned SBS Transit (SGX:S61) has recently submitted its bid for the PT219 Seletar bus tender and this new package is to commence on 16 Mar 2025. Results are expected to be announced in Jun/Jul 2024.

Taxi & private hire faces some competition

• - Read this at SGinvestors.io -
• The higher commuting costs and competition from other ride-hailing firms also resulted in a decline in Singapore taxi booking volumes to ~7m in 1Q from ~8m a year ago.

Joins hands with Gojek to tackle driver shortage

• Read more at SGinvestors.io.

Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-15 SGinvestors.io

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