ComfortDelGro - RHB Invest 2024-09-12: Higher Public Transport Fares In Singapore; BUY

• The Public Transport Council (PTC) has announced a 6% fare increase effective 28 Dec 2024 – in line with our estimate. We expect ComfortDelGro’s Singapore rail business, which operates under SBS Transit Rail (SBSR, subsidiary of SBS Transit (SGX:S61)), to report a small profit in 2024.
• - Read this at SGinvestors.io -

6.0% fare increase

• The 2024 Fare Review Exercise (FRE) translated into a fare adjustment of 3.3%. After adding the deferred fare quantum of 15.6%, the maximum allowable fare adjustment quantum for the 2024 FRE comes up to 18.9%.
• - Read this at SGinvestors.io -
• While the fare adjustment is higher than the inflation rate, PTC noted that public transport fares remain affordable, as the monthly public transport expenditure accounted only for 2.4% of the household income for second-decile income group households in 2023.

Impact on SBS Transit Rail (SBSR)'s earnings

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Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-09-12 SGinvestors.io

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