SBS Transit profit after tax drops 20.6% y-o-y to $14.45 mil for 3QFY2025 in business update

ComfortDelGro owns 75% of SBS Transit, which is listed separately on the Singapore Exchange. SBS Transit is a leading bus and rail operator in Singapore. Every day, it carries more than three million passengers on its extensive bus and rail network.
 

ComfortDelGro subsidiary Vicom reports 45% y-o-y growth in patmi for 3QFY2025 to $9.9 mil

Wolf Money(Comfortdelgro)

1. Diversified transport business & strong home base
   • ComfortDelGro is a major transport operator in Singapore (buses, taxis, rail) and has expanded internationally.      
   • It has a defensible position in Singapore public-transport market, which gives a steady foundation.      
   • International operations are growing: for example, overseas profits rose from 26% of group earnings in FY2023 to 34.9% in FY2024.      
2. Growth and margin improvement underway
   • The group reported revenue growth (for example +16.4% in Q1 2025) and net profit growth (19%) supported by cost controls and operational improvement.      
   • In the UK and elsewhere, contract renewals and favourable pricing are improving margins.      
3. Strong commitment to sustainability and future mobility trends
   • ComfortDelGro has set emissions-reduction targets under the Science Based Targets initiative (SBTi) and is shifting its fleet toward hybrid/electric vehicles.      
   • They have rebranded with a purpose Mobility for a better future and emphasise multi-modal mobility and innovation.      
   • This aligns the company with global megatrends: decarbonisation, urbanisation, smart mobility.
4. Relatively stable cash-flow business with dividend potential
   • Transport operations (buses, rail, taxis) tend to offer steady demand in urban environments and develop long-term contracts.
   • Some reports mention a policy of paying out at least 50 % of profit after tax as dividends.      
   • For income-seeking investors, that stability can be attractive.
5. Low gearing / manageable debt and global exposure
   • One write-up noted the group gearing was low (around 6%) in one analysis, giving financial flexibility.      
   • Global footprint activities in UK, Australia, China, Malaysia etc. helps reduce dependence on one market.      

• With global and domestic transport demand likely to recover/expand (urban population growth, mobility needs, policy support for public transport), a company with entrenched scale plus global reach is well-positioned.
• The shift to cleaner vehicles and sustainable transport may create new growth areas (EV fleets, maintenance, new contracts) for the company.
• Being a more defensive business (transport infrastructure rather than purely consumer-discretionary) may cushion against economic downturns somewhat.

1. Defensive & stable business model ComfortDelGro has a large core in public transport (bus, rail, taxi) which tends to be less cyclical than many other sectors.    
2. Global diversification The company is expanding overseas which reduces reliance on just Singapore. For example it has international bus/rail contracts.    
3. Dividend yield Analysts point out an attractive dividend yield of ~5-6% (or more) which is appealing for income-oriented investors.    
4. Valuation looks reasonable Some reports suggest the company is trading at modest valuation multiples (P/E, EV/EBITDA) compared to its history or peers.    
5. Growth initiatives Beyond just operating traditional transportation, the company is targeting new areas like EV infrastructure, autonomous vehicles, data analytics, etc.