ComfortDelGro - UOB Kay Hian 2024-09-12: Higher Fares & More Contract Wins

• ComfortDelGro announced that its wholly-owned Australian subsidiary has been awarded three new bus contracts in Melbourne, Australia, increasing the group’s existing bus fleet.
• In line with expectations, the PTC also announced that public transport fares in Singapore would increase by up to 6.0% in end-4Q24 due to inflationary pressures, benefitting public transport operators such as ComfortDelGro.
• - Read this at SGinvestors.io -

Awarded new bus contracts.

• ComfortDelGro announced that through its wholly-owned Australian subsidiary, ComfortDelGro has been awarded three contracts in Melbourne under the Victorian Department of Transport and Planning’s Metropolitan Zero Emission Bus (ZEB) franchises.
• - Read this at SGinvestors.io -
• Funded by the contracts, the buses and depots will then transition to full ZEB operations prior to the end of the contract term. These contracts would commence on 1 Jul 25 and last for 10 years, valued at around A$1.6b (S$1.4b).
• Also, ComfortDelGro will transfer ownerships of its existing bus depots to the government, booking a one-off gain of around S$14m.

Neutral impact to earnings

• Read more at SGinvestors.io.

Llelleythan Tan UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-09-12 SGinvestors.io

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