ComfortDelGro (CDG)

ComfortDelGro posts 0.6% increase in FY18 earnings to $303.3 mil; declares final dividend of 6.15 cents

SINGAPORE (Feb 13): ComfortDelGro, one of the world’s largest land transport companies, today announced that its FY18 earnings have increased by 0.6% to $303.3 million, compared to $301.5 million in FY17.

However, adjusting for the one-off special dividend from A2B Australia Limited in 2017 and the net gain on the Surrender of lease of the property at Teban Gardens from VICOM in 2018, earnings for FY18 would have been $298.2 million, 2.3% higher than earnings of $291.5 million in FY17.

ComfortDelGro kept at 'buy' by UOB KayHian on overseas acquisitions

SINGAPORE (Feb 8): ComfortDelGro, the world’s second largest listed passenger land transport company, is announcing its 4Q18 results ended Dec on Feb 13.

UOB KayHian expects the transport operator to see a 5% y-o-y fall in FY18 revenue of $3.8 billion and a 4% y-o-y rise in core PATMI of $300 million, implying a core PATMI margin of 7.9%.

A sharper-than-expected decline in the taxi fleet has led to a downward revision to UOB’s FY18 estimates. Offsetting the decline are maiden contributions from the Bukit Merah bus contract and contributions from overseas acquisitions.

3 defensive plays to tide investors over a volatile 2019: RHB

SINGAPORE (Jan 23): RHB Research has an “overweight” rating on banks for the sector’s strong growth and high yields; the consumer and industrial space as defensive sector picks; as well as REITs that are beneficiaries of improving economic activity, and/or with strong balance sheets.

Singapore's transport sector is stuck in a jam: DBS

SINGAPORE (Dec 21): DBS has a “neutral” rating on Singapore’s transport sector in 2019, with hopes that a better-than-expected economic growth and activity globally would help improve demand volume and pricing for the transport sector.

This in turn should help improve ROEs, which have been under pressure for the past few years.

The research house has ComfortDelGro and ST Engineering as its top “buy” picks. Meanwhile, for air travel growth proxies, DBS likes SATS and China Aviation Oil (CAO).

ST Eng, SIA named OCBC's top sector picks for resilience and low valuations

SINGAPORE (Nov 30): OCBC Investment Research is maintaining “neutral” on the Singapore industrials sector, indicating a preference for ST Engineering and Singapore Airlines (SIA) due to their earnings resilience and low valuations, respectively.

Both stocks have been rated “buy” with fair value estimates of $3.95 for ST Engineering and $10.71 for SIA, which was upgraded in mid-Oct on valuations after it closed at $9.15 to imply a price-to-book value of 0.8 times, which is near 2008 crisis levels.

ComfortDelGro kept at ‘hold’ by RHB as rising taxi competition stays a risk

SINGAPORE (Nov 12): RHB Research is maintaining ComfortDelGro at "hold" given rising competition from Singapore private hire car (PHC) players could keep its share price in check in the near term.

In 9M ended Sept, ComfortDelGro reported profit of $220 million, making up 67% of RHB’s estimates. Higher costs for staff, fuel and repair and lower-than-estimated profit from taxi were key reasons for the earnings miss, says RHB.

Ride-hailing rivalry, goodies unlikely to return to 'good old days'

SINGAPORE (Oct 31): DBS Group Research says the competition and level of subsidies seen during the Grab vs Uber era are unlikely to return.

This is because the outcome of the first round of competition has not been particularly smooth for the players and the acquisition of Uber’s Singapore operations by Grab had resulted in fines by the competition watchdog.

On Monday, Grab’s next rival Go-Jek started pre-registration for drivers in Singapore, with about 1,000 potential drivers having signed up, according to media reports.

Is Go-Jek’s entry a worry for ComfortDelGro?

(Oct 11): CIMB-CGS Securities says potential private hire car entrant Go-Jek should not be a worry for ComfortDelGro, at least in the immediate term.

With the lack of a sizeable domestic app user base providing ample demand for taxi drivers to switch over, Go-Jek will need to go after Grab’s private hire car (PHC) driver base first to form the supply, says CIMB-CGS.

Still, there is the risk that a revival of PHC competition could eventually hurt ComfortDelGro’s taxi earnings in the longer term.

Gradual turnaround of taxi operations keeps ComfortDelGro at 'buy'

SINGAPORE (Sept 4): DBS Group Research is maintaining its forecasts and “buy” recommendation for ComfortDelGro.

This comes as its taxi fleet contraction bottoms out, giving way to expansion on the back of a milder competitive environment.

Furthermore, the group has been leveraging on its balance sheet to pursue inorganic growth opportunities to supplement growth.

In addition, a fare increase recommendation by the Public Transport Council (PTC) bodes well for rail operators such as SBS Transit, ComfortDelGro’s subsidiary.

ComfortDelGro stock rises from the ashes of Uber's demise

SINGAPORE (Aug 8): In a little over seven months, Singapore’s largest taxi company has reversed course from the city-state’s second-worst performing stock to its best, as competition for passengers eased following Uber Technologies Inc.’s exit from Southeast Asia.

ComfortDelGro has rallied 20% this year, against the benchmark Straits Times Index’s 2.2% decline. The company’s shares rose 4% on Wednesday to close at $2.37 in Singapore.

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