- 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.
- - Read this at SGinvestors.io -
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.
- - Read this at SGinvestors.io -
- 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:
- Read more at SGinvestors.io.
