ComfortDelGro - RHB Invest 2024-06-20: Operational Improvement In Singapore Continues

ComfortDelGro - Operational Improvement In Singapore Continues

ComfortDelGro (SGX:C52) | SGinvestors.ioComfortDelGro (SGX:C52)
  • ComfortDelGro's share price has declined by ~10% from its April peak of S$1.50. We believe much of this was driven by ComfortDelGro’s seasonally soft 1Q24 results and the market's expectation of below-street estimate earnings for the rest of 2024.
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What is driving our expectations of a stronger earnings outlook for ComfortDelgro in the rest of 2024?

i) Public Transport segment:

  • Margin recovery in UK bus operations amidst continuing service fee indexation benefits.
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  • Moderation in operating costs for Singapore’s public transport operations towards the end of 2024 as existing electricity contracts are re-contracted at lower rates.

ii) Taxi & Private Hire segment:

  • Y-o-y higher earnings for Singapore taxi operations amidst higher fare and commission rates.
  • Improvements in Chinese taxi business as the business gradually returns to pre-COVID-19 levels.
  • Earnings contribution from A2B Australia, which facilitates taxi bookings and payment processing fees for non-cash taxi payments. The acquisition of A2B was completed in Apr 2024.

iii) Other Private Transport segment:

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Shekhar Jaiswal RHB Securities Research | 2024-06-20

Previous report by RHB:
2024-05-15 ComfortDelGro - Seasonally Weak 1Q24; Better 2H24 Expected; BUY.

Price targets by 5 other brokers at ComfortDelGro Target Prices.

Listing of research reports at ComfortDelGro Analyst Reports.

Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividends & Corporate Actions,
ComfortDelGro News Articles


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