|Bid||1.99 x 0|
|Ask||1.99 x 0|
|Day's range||1.99 - 2.03|
|52-week range||1.96 - 2.80|
|PE ratio (TTM)||13.45|
|Earnings date||10 Nov 2017|
|Dividend & yield||0.06 (3.91%)|
|1y target est||2.34|
Grab drives another blow to ComfortDelGro's (CDG) taxi business by extending its discount campaign for drivers to 6 October 2017. According to OCBC Investment Research, the number of CDG’s taxi hirers who may switch to Grab has increased to more than 3,000. Grab first offered a $50 discount per day for six months to CDG’s taxi hirers if they switch over to any of Grab’s taxi-fleet partners.
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 ...
Earnings from taxis could fall to 5% next year. ComfortDelGro's (CDG) potential partnership with Uber could reduce the decline of its taxi business, Maybank Kim Eng said. The bank said CDG securing Uber's ...
APAC Realty Limited, which operates under the ERA brand, received robust investor interest for its shares during its initial public offering (IPO), with the public offering and international placement being 29.0 times and 13.4 times subscribed, respectively. The company offered an international placement of 44.5 million shares and a public offering of 4.4 million shares at $0.66 per share. In a release, APAC Realty revealed that it received 3,035 applications for a total of 127.7 million shares for its public offering, with the application monies amounting to around $84.3 million.
SMRT's offer was 30% lower than SBS Transit's. SMRT beat SBS Transit (SBST), a company where ComfortDelGro owns 75%, in a bid to operate Thomson-East Coast Line (TEL) for an initial nine-year period. According ...
According to Channel News Asia, who broke the news, Grab was offering a daily rental discount of up-to S$50 (US$36) to drivers who rented from the four local companies in its network. The companies are Premier, Prime, SMRT and TransCab (and are all of the other Taxi companies in Singapore besides Comfort). Furthermore, if Comfort drivers switch to private-hire cars rented from Grab they will receive a S$1,688 (US$1,255) monthly discount upon completing 20 trips per week.
Amidst the elevated competition from private hire car firms, ComfortDelGro's recent Uber deal could not have come at a better time. According to RHB analyst Shekhar Jaiswal, ComfortDelGro is expected to benefit from an improved taxi utilisation from the deal. To recall, ComfortDelGro's taxi revenue already fell 11% to $36m YoY in 2Q17.
Since the emergence of Uber and Grab, ComfortDelGro has been finding ways to go head-to-head with the competition instead of improving themselves.
Cogent Holdings’ (Cogent) revenue for 2Q17 rose 3.6% in line with our forecast driven by improved profitability for the container depot operations as well as maiden contribution from Phase 2 of Port Klang Free Zone warehouse.
This segment could see some recovery in 2H17. ComfortDelGro's public transport service segment has seen a slight dip in operating profit for the first six months of the year. According to UOB Kay Hian, ...
It recently reported dismal taxi figures for the past quarter. The competition is getting intense in the taxi landscape and ComfortDelGro is feeling the pressure. According to UOB Kay Hian, the group's ...
The app has around 100,000 members. After Ryde was given the go-ahead to be a third-party taxi booking service provider by the Land Transport Authority, it partnered with ComfortDelGro to launch a taxi booking service. Launched in 2014, Ryde was the world's first real-time carpooling app home-grown in Singapore.
ComfortDelGro's bus business performed spectacularly in the past quarter, as figures from CIMB showed. According to the brokerage firm, the operating profit of ComfortDelGro's bus segment grew 18.1% to $13m in the past quarter. This improvement was brought about by the higher revenue and better margins of the bus business under the new contracting model.
The firm will depend on Downtown Line’s opening for revenue growth. Although ComfortDelGro’s (CDG) 1Q17 results came in largely within expectations of analysts at OCBC despite a 2.4% YoY decline in revenue to $972.0m, it is expected that CDG’s taxi business will still be enduring troubles to come moving forward through 2017, at least until the new Downtown Line opening. “Looking ahead, we expect its CDG’s taxi business to continue to face headwinds while revenue growth will be driven by the expected opening of DTL3 in 2H17, which serves the most populated areas compared to the first two phases.
ComfortDelGro reported strong bottom line despite the slump in its revenue for the quarter ending in March. For the said quarter, group revenue was down 2.4% to $972m, mainly attributable to the negative foreign currency translation of $24.8m due to the weaker Sterling Pound and Chinese Renminbi. Despite this, net profit grew by 12.4% to $82.5m, boosted by lower operating and finance costs.
It will instead adopt a flat fare structure. Authorities recently gave a go-ahead for taxi operators to introduce dynamic pricing for trips booked through mobile applications. ComfortDelGro has chosen not to introduce such scheme for now, and will instead adopt a flat fare structure for mobile bookings.
It will have must pass on the tax reduction to drivers. Minister Heng Swee Keat announced during the Budget 2017 the restructuring of diesel taxes from lump-sum tax, a special tax levied on diesel taxis and is payable annually, to usage-based tax which is based on the volume of diesel used. What does this mean for transport group ComfortDelGro?
It will enjoy a higher EBIT margin of 7%. This year marks the first full year implementation of the new bus contracting model and surely, ComfortDelGro's bus business will reap the benefits of the new model. According to CIMB, with its cost-indexed feature and asset-light nature, it could spur a higher operating margin for the group.
Transport group ComfortDelGro seemed to have extra cash to spare as it eyes to acquire 49% stake in ComfortDelGro Cabcharge from its partner, Cabcharge Australia for around $196m in cash. According to RHB Research, the management stated that the cash consideration would be funded through combination of internal funds and bank borrowings. "However, we believe there is enough funds on ComfortDelGro’s balance sheet to fund the acquisition fully in cash, while maintaining an increasing dividend payout ratio," the research firm noted.
A successful bid to operate the Thomson-East Coast line is one. According to a report by Maybank Kim Eng, one thing that can kick off the turnaround is the successful bid to operate the Thomson-East Coast Line.
Despite the booming popularity of ride-hailing apps like Grab and Uber, ComfortDelGro still stood their ground, managing to maintain a close to 100% hire-out rate. According to RHB analyst Shekhar Jaiswal the group's taxi business has seen negligible impact from rising competition presented by Uber and Grab. OCBC Investment Research analyst Eugene Chua also have the same thing in mind, noting that taxi earnings should remain stable as ComfortDelGro continues its fleet renewal programme.
The Public Transport Council announced last week that public transport fares will be reduced by 4.2% starting next year, with the conclusion of its 2016 Fare Review Exercise. The reduction follows on from last year’s 1.9% cut, DBS Group Research said noting that this could have led to weakness on ComfortDelGro’s (CD) share price given its exposure in the Singapore public transport space. DBS stated that the estimated impact on revenue from the announced fare reduction on the Public Transport Operators will be about $79m a year, $8.9m of which will be shouldered by ComfortDelGro's subsidiary, SBS Transit.
The $8.9m revenue drop will be made god by the LTA. With ComfortDelGro's bus business already under the new government contracting model, the recently announced 4.2% fare cut will not affect its bus revenue, since all revenue risk from bus fares will be on LTA and not the operator. According to OCBC Investment Research, with CDG’s rail segment not as significant its bus segment, the fare reduction of 4.2% translates to a total decrease in fare revenue of only S$8.9m for CDG.