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Can ComfortDelGro still survive without local taxi segment?

Singapore Business Review

It may find yields from other transport areas.

ComfortDelGro can still retain its distribution per share (DPS) even without free cash flow (FCF) from its Singapore taxi operations, UOB Kay Hian said.

UOB said it can still have a DPS of 10 cents per share. It would imply a dividend yield of 4.7-4.9% from 2017 to 2019.

This may be helped by its alliance with Uber and ridership growth from Downtown Line 3 (DTL3) despite a 17% share price decline TD.

"Despite the negative structural change in the taxi business, we note that the positive structural change in buses and rails in the form of being more asset-light has improved CD’s FCF," UOB said.

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It projects FCF per share to rise from 15 cents per share in 2016 to 22-26 cents per share in 2017-2019, including Singapore taxis.



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