|Bid||2.6300 x 0|
|Ask||2.6400 x 0|
|Day's range||2.6200 - 2.6500|
|52-week range||2.0700 - 2.6600|
|Beta (3Y monthly)||0.37|
|PE ratio (TTM)||18.86|
|Earnings date||11 Feb 2019 - 15 Feb 2019|
|Forward dividend & yield||0.10 (4.09%)|
|1y target est||2.55|
SINGAPORE (Apr 23): ComfortDelGro Corporation announced Tuesday it is acquiring Australian bus service operator B&E Blanch for A$28.3 million ($27.5 million). B&E Blanch, which has a fleet of 48 buses and coaches, runs scheduled route and school bus services in New South Wales (NSW). The company operates as Blanch’s Bus Company and Brunswick Valley Coaches.
SINGAPORE (Apr 17): OCBC Investment Research is keeping its “hold” call on ComfortDelGro (CDG), but raising its fair value estimate to $2.63 from $2.38 on the back of improved market sentiment for the public transport operator.Analyst Low Pei Han notes that the share price of CDG’s 74.5%-owned subsidiary SBS Transit has climbed around 56% year-to-date.She adds that this has been supported by earnings growth with the contributions from the Seletar and Bukit Merah Bus Packages, which commenced operations from March and November 2018, respectively.“As a comparison, SBS’s net profit was $80 million versus CDG’s $303 million in FY18, while SBS’s net profit was $47 million versus CDG’s $302m in FY17,” Low says, noting that SBS now accounts for around 20% of CDG’s net profit.Meanwhile, CDG is also expected to be lifted pending conclusions to the government’s earlier consultation paper on changes to regulations for the point-to-point (P2P) transport sector, which closed nearly two months ago on Feb 21.“There are expectations that a new regulatory framework for the P2P transport sector will be established, given the current sheer size of the private hire sector. For instance, regulatory scrutiny of the private hire industry may be increased, levelling the playing field for taxi operators,” says Low.According to data from the Land Transport Authority (LTA), Singapore’s taxi fleet has fallen 10% y-o-y to 20,256 as at February 2019, with CDG commanding a share of around 60%.In contrast, the number of private hire cars stood at 67,788 as at February 2019, relatively unchanged from a year ago, Low notes.As at 2.56pm, shares in ComfortDelGro are trading flat at $2.61, implying an estimated price-to-earnings (PE) ratio of 17.7 times and a dividend yield of 4.0% for FY19.
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SINGAPORE (Mar 4): Maybank Kim Eng is starting coverage on ComfortDelGro (CDG) at “hold” with a target price of $2.45.This comes on expectations the group’s transport focus and global expansion, which will provide a decent shelter amid private taxi-hailing competition, has been priced into valuations of 17 times 2019E-20E P/E.In an initiation report on Sunday, analyst Luis Hilado identifies the UK and Australia as markets which would be in line with CDG’s management plans to invest in companies that permit majority control overseas, preferably with rate structures like those under Singapore’s bus-contracting model (BCM) which would allow for immediate earnings accretion.He estimates the management’s acquisition allowance of up to $1 billion will translate to a gearing of just 24% versus current net cash.“With or without such acquisitions, we believe CDG can continue to support 75% dividend payouts and generate defensible yields. In the event there are no major acquisitions, we would not rule out the possibility of special cash dividends in the medium-term,” says Hilado.While the analyst thinks competition from the group’s unlisted rivals Grab and Go-Jek is currently “not yet as fierce”, he says each 50bp reduction in CDG’s taxi EBIT margins could hurt Maybank’s 2019E core profit projections and target price by 1%.The research house is already assuming a –5% CAGR for taxi EBIT over 2018-21E.“Share support should come from continued forecast payouts of 75% for prospective 4.3%-4.5% yields. Irrational taxi competition remains a risk to our outlook while additional contributions from acquisitions could provide upside,” he notes.As at 11.06am, shares in CDG are trading flat at $2.43 or 2 times FY19E book value.
SINGAPORE (Feb 15): RHB Research has upgraded ComfortDelGro to “buy” with $2.65 target price given the stock could re-rate further on expected strong profit contribution from new acquisitions, continuing organic growth in public transport business and lack of material rise in competition so far from private hire car players in its taxi business. ComfortDelGro’s FY18 PATMI came in at $303 million, in line with RHB’s estimate of $307 million. New acquisitions contributed sales of $124.2 million, which accounted for 54% of the revenue increase.