ComfortDelGro - OCBC Investment 2024-11-15: Acquisition-fuelled Growth

• ComfortDelGro’s 3Q24 revenue and operating profit rose 18.4% and 21.8% y-o-y, or 6.1% and 6.6% q-o-q to S$1.2b and S$90.1m, respectively, with operating profit margin remaining fairly stable at 7.6%.
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9M24 results were a slight beat.

• On a 9M24 basis, ComfortDelGro’s revenue and PATMI grew 15.4% and 19% y-o-y to S$3.3b and S$152.8m, coming in at 75.7% and 76.7% of our initial full year forecasts, respectively.

Stronger-than-expected 3Q24 performance from thePublic Transport segment.

• Revenue and operating profit from the Public Transport segment was up 5.2% and 20.5% q-o-q to S$815m and S$37.6m, respectively, mainly on a 0.6 percentage point (ppt) improvement in operating profit margin on the back of public bus contract renewals in the UK.

Taxi & Private Hire segment saw some softness

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• However, operating profit for this segment was down 9.9% q-o-q at S$35.7m, translating to a 2.2ppt compression in operating profit margin to 19.2%. Nonetheless, we note that this is comparable to operating profit margin of 19.3% in 3Q23.

Stable performance from the remaining segments.

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Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-11-15 SGinvestors.io

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