ComfortDelGro's 9M24 revenue was above expectation at 80% FY24e due to CMAC acquisitions. PATMI was within our expectations at 74%. 3Q24 PATMI rose 15% y-o-y.
Profitability in Australia has suffered due to bus driver shortages collapsing margins. Excluding CMAC and A2B acquisition, total EBIT growth was 8% y-o-y, led by higher margins from repricing of UK bus operations. The largest drag was Australia, where EBIT collapsed 51% y-o-y after removing A2B due to bus driver shortages.
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Earnings growth drivers are UK repricing and recent acquisitions. Unclear are the potential synergies from the acquisitions that have totalled around S$750mil this year.
The Positive
Spike in UK bus earnings.
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From the group EBIT growth (ex-acquisition) of S$6mil in 3Q24, the UK contributed S$9mil but pulled down S$6mil from weakness in Australia. Singapore added S$3mil.
The Negative
Australian earnings are still sliding.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
