ComfortDelGro - RHB Invest 2024-08-20: Remaining Positive On Growth Outlook; Reiterate BUY

• ComfortDelGro (SGX:C52)'s 1H24 PATMI accounted for 44% of our 2024F earnings. While there are competitive pressures in the Singapore taxi business and driver shortages in the Australian public transport segment, we expect a better 2H24 amidst seasonality, contributions from a recently completed acquisition, and improving margins for ComfortDelGro’s UK public transport business.
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The UK should continue driving the public transport business higher.

• The public transport wing reported strong growth in revenue and EBIT during 2Q24, aided by UK bus contract renewals at higher margins and the ongoing UK cost indexation benefits flowing into the bottomline.
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• In Singapore, the public transport business should see some dip in revenue from the loss of the Jurong-West bus contract and successful re-tendering of the Seletar bus package at slightly lower margins.

A2B acquisition to boost taxi earnings.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-08-20 SGinvestors.io

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