ComfortDelGro - RHB Invest 2024-11-15: Sequential Growth Continues; Keep BUY

• ComfortDelGro has reported its sixth consecutive quarter of y-o-y earnings growth, as expected.
• 3Q24 y-o-y growth was aided by the renewal of UK public transport contracts at higher margins, contribution from the CMAC and A2B acquisitions, as well as higher commission rates and fares for its Singapore taxi/private hire vehicles (PHV).
• - Read this at SGinvestors.io -

3Q24/9M24 results update.

• ComfortDelGro's 3Q24 revenue came in at S$1.18bn (+18.4% y-o-y) with a PATMI of S$57.5m (+15.2% y-o-y), while 9M24 revenue came in at S$3.30bn (+15.4% y-o-y). 9M24 PATMI of S$152.8m (+19.0% y-o-y) was a tad below our estimates.
• - Read this at SGinvestors.io -
• ComfortDelGro noted that about a quarter of UK bus contracts have been adjusted to higher margins, and more upward adjustments will be visible as contracts are renewed. This should continue to drive margin improvement over the next 6-9 months.
• Year-to-date capex was 23% higher y-o-y and should see a similar trend in 4Q24 as ComfortDelGro continues to replace its Singapore diesel taxis with EV/hybrid vehicles.

Singapore taxi/PHV business remains soft.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-11-15 SGinvestors.io

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