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COMFORT DELGRO - MOVING FORWARD
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Joelton
Supreme |
18-Feb-2025 11:20
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Australian unit of ComfortDelGro probes media allegations of wrongful conduct
A2B Australia, a subsidiary of the transport operator, has engaged external legal counsel
 
AN AUSTRALIAN unit of ComfortDelGro : C52 -2.17% is investigating allegations of wrongful conduct made by several media companies, and it is considering legal action.
 
In a bourse filing on Monday (Feb 17), ComfortDelGro said The Sydney Morning Herald and The Age, as well as 60 Minutes Australia had reported &ldquo serious allegations of scams and fraudulent taxi transactions&rdquo .
 
These transactions were said to be related to and against A2B Australia and its wholly owned subsidiary Cabcharge Payments. Both A2B and Cabcharge are indirect, wholly owned subsidiaries of ComfortDelGro.
 
The media companies had accused A2B, &ldquo the country&rsquo s largest taxi company&rdquo , of taking the public &ldquo for a ride&rdquo . The allegations came amid a leak of confidential files, which indicated that A2B&rsquo s senior staff had failed to prevent the fraud.
 
The article noted that A2B chief executive Nick Yap was warned by an outgoing senior compliance manager that it was &ldquo particularly troubling&rdquo that the scams involved &ldquo vulnerable sectors such as NDIS, aged care and hospitals&rdquo .
 
NDIS is Australia&rsquo s National Disability Insurance Scheme that supports disabled people under 65 years old.
Yap was also reportedly informed by another compliance manager, who has since left the company, that &ldquo major fraud on the Cabcharge terminals goes back years and senior management was made aware&rdquo .
 
According to the article, the scams involve taxi drivers exploiting loopholes in the terminal and payment systems provided by A2B, to overcharge passengers. This benefits the driver and Cabcharge, which &ldquo pockets a percentage of every transaction on the terminal&rdquo , noted the report.
 
The scams are also said to involve the gaming of Cabcharge fare payment products which A2B supplies to state and federal agencies, companies, hospitals and other health and disability services.
 
Some names documented in the media report include Victoria Maroondah Hospital, aged and disability care company Villa Maria Catholic Homes, as well as the Peter James Centre, an aged and chronic illness care facility in Melbourne.
 
ComfortDelGro said: &ldquo The board of directors of the company wishes to state that the company and its subsidiaries have a zero-tolerance policy towards any kind of fraud and wrongdoing.&rdquo
 
&ldquo The matter is currently being actively investigated by A2B which has engaged external legal counsel to advise on the matter and has written to Nine to reserve its rights,&rdquo added the land transport operator.
 
It also noted that the company will continue to monitor the situation and provide updates on material developments.
 
Responding to BT queries, an A2B spokesperson said it &ldquo categorically rejects the false and misleading claims made by 60 Minutes, The Age and The Sydney Morning Herald that the company benefits from fraud.&rdquo
 
It added: &ldquo These allegations ignore the extensive measures we have taken to prevent and combat fraudulent activity in the taxi industry.&rdquo
 
ComfortDelGro Australia completed its acquisition of A2B in April 2024. Since the acquisition, A2B has implemented strict measures to prevent fraud, it told The Business Times.
 
These measures include two-factor authentication on Cabcharge cards, the introduction of direct meter integration for accurate fare recording, as well as technology that eliminates manual fare pricing, requiring all payments to go through the taxi meter.
 
A2B also removed the ability of handheld payment terminals, that were not directly connected to a taxi meter, to process Cabcharge payment products.
 
&ldquo A2B does not tolerate fraudulent behaviour and takes action against drivers engaged in misconduct. The company has also cooperated with authorities when required, ensuring that fraudulent activities are identified and addressed,&rdquo said the spokesperson.
 
&ldquo The claims made by 60 Minutes and its associated media outlets are not only misleading but also fail to acknowledge the extensive reforms A2B has introduced to prevent fraud in the taxi industry,&rdquo it added.
 
&ldquo Due to the serious inaccuracies in these reports, we are considering legal action and cannot comment further,&rdquo said the spokesperson.
 
The media platforms that reported on the matter are owned by Nine Entertainment. The Australia-based media company declined The Business Times&rsquo request for comment.
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Asdfgh101
Member |
17-Feb-2025 15:51
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So far I can only think of GLP where a "GLC" made profits of when ot privatised...any others? | ||||
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Joelton
Supreme |
17-Feb-2025 09:22
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Comfort Delgro: ALLEGATIONS OF WRONGFUL DOING AT A2B AUSTRALIA
https://www.invest-alpha.sg/view& id=659
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investshare
Supreme |
17-Feb-2025 09:08
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Due diligence not done in Australia acquisition?
Fr the news, the Australia unit internal compliance fully aware of the fraud. |
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Entropy72
Master |
07-Feb-2025 10:46
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See results and dividends on 27 Feb. Still stuck in COVID price range. | ||||
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john_ric
Supreme |
07-Feb-2025 10:45
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Still in talks | ||||
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Asdfgh101
Member |
07-Feb-2025 09:48
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Wonder if Grab Gojek merger is causing the price to be depressed? | ||||
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Speediman
Senior |
05-Feb-2025 15:23
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UOB justed added CDG to its alpha picks. This come just 2weeks after it lower the target price.  Buy back after realising that no one joins them in shorting?  
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Battle123
Elite |
02-Feb-2025 21:43
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can start to accumulate   |
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Asdfgh101
Member |
01-Feb-2025 14:14
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× The Straits Times SPH Media Limited INSTALL The Straits Times logo MRT, LRT ridership surpasses pre-Covid-19 levels for first time in 2024 ST20190910-201951268862-Lim Yaohui/ Area around Tampines MRT station at 8.35am when the PSI range is 83-94 at 8am on Sept 10, 2019. The haze may be back, and could persist in coming weeks. The 24-hour Pollutant Standards Index (PSI) - a measure of air quality here - is steadily creeping towards unhealthy levels. SINGAPORE - Ridership on Singapore?s MRT and LRT lines surpassed pre-Covid-19 levels for the first time in 2024, even though the average daily number of overall rides on public transport still came in below that in 2019. On average, there were 3.41 million MRT rides each day in 2024, based on figures released by the Land Transport Authority (LTA) on Jan 31. This was an increase of 5.2 per cent over 2023 levels, and exceeded the 3.38 million daily MRT rides clocked in 2019. The average daily ridership on the LRT network in 2024 came to 210,000, an increase of 4 per cent over the 2023 figure. It was a touch above the 208,000 rides in 2019. There was an average of 3.84 million trips a day on public buses in 2024, 2.4 per cent higher than the 3.75 million rides in 2023. But this still came short of the 4.1 million daily bus rides in 2019. Overall, there was a daily average of 7.46 million bus and train rides in 2024, 3 per cent below the 7.69 million rides recorded in 2019. Transport experts attributed the rise in MRT and LRT ridership to the continued expansion of the rail network, but said flexible work schemes mean overall public transport ridership has yet to catch up to pre-pandemic levels. LTA on Jan 31 also released ridership figures for taxis and private-hire cars. At 431,000, the number of daily rides in private-hire cars in 2024 was 8.6 per cent above the 397,000 trips in 2023. It surpassed the 419,000 rides clocked in 2019 for the first time. It was a vastly different picture for cabs, which recorded a continued decline in ridership. The average daily taxi ridership of 187,000 was 10.5 per cent lower than the 209,000 trips in 2023, and just slightly more than half of the 353,000 trips recorded in 2019. Taxis and private-hire cars, which collectively make up the point-to-point (P2P) transport sector, managed an overall average daily ridership in 2024 of 618,000, which is still below the 772,000 rides in 2019. Associate Professor Raymond Ong, a transport infrastructure researcher at the National University of Singapore, attributed the increase in train ridership to the expansion of the rail network in 2024. He pointed to the opening of the fourth stage of the Thomson-East Coast MRT Line (TEL4) in June 2024 which connects those living in the East Coast area to Marina Bay and Woodlands North. Spanning 10.8km, the stretch comprises seven stations ? Tanjong Rhu, Katong Park, Tanjong Katong, Marine Parade, Marine Terrace, Siglap and Bayshore. On the Sengkang-Punggol LRT network, Teck Lee station opened in August 2024, serving the business park in the Punggol Digital District and the Singapore Institute of Technology?s campus. Dr Samuel Chng, head of the Urban Psychology Lab in the Lee Kuan Yew Centre for Innovative Cities at the Singapore University of Technology and Design, said the adoption of flexible work arrangements partly explains why overall ridership has yet to exceed 2019 levels. But with the continued expansion of the rail network, ?we can expect MRT trips to continue to increase in the coming years?, he added. Prof Ong said that while the average daily ridership for buses has not caught up to 2019 levels, it is still the most widely used mode of public transport. ?Even with more MRT stations being opened, leading some passengers to switch away from buses, we are still seeing bus ridership increase, so don?t discount the bus as a core mode of public transport,? Prof Ong added. In July 2024, the Land Transport Authority announced that it would spend up to $900 million to improve public bus connectivity over eight years. This includes accelerating the roll-out of bus services in new towns, and introducing express feeder buses to serve new housing developments and more peak-hour express bus services to complement busier MRT lines. Singapore University of Social Sciences transport economist Walter Theseira noted that the ridership data should be seen in the context of Singapore?s population growth since 2019. More on this Topic Yew Tee residents look forward to DTL extension connecting ?remote? neighbourhood to the city DTL extension to Sungei Kadut to open in 2035, including new MRT station near Yew Tee Village At last count, the total population of Singaporeans, permanent residents and non-residents in Singapore stood at 6.04 million in 2024, compared with 5.7 million in 2019, based on government data. ?Per capita ridership is actually much lower than what the top-line figures indicate,? said Associate Professor Theseira. ?It points to changes to commuting and travel from flexible work, remote work and services, and at least some part of those changes is likely permanent.? Housewife Julietta Ismail, who lives in Marine Terrace in Marine Parade, said the opening of the MRT station in the area, which is part of TEL4, has made it more convenient for her to get around, including to nearby amenities. Around four times a month, the 51-year-old will take the train to the Marine Parade station, which is one stop away, to shop at Parkway Parade mall. ?It is just faster and more convenient for me,? she said. In 2022, Mr Colin Chen, head of environmental, social and governance (ESG) finance for the Asia-Pacific at MUFG Bank, switched from driving to taking a bus to work from his home in Pasir Panjang to his office in the Central Business District. The 61-year-old said that although the bus journey is longer, he finds it more convenient because there is no need to look for a parking space. As for the continued drop in the number of taxi rides in 2024, Prof Theseira said it is clear that taxi operators have chosen to let their fleets shrink, and cab drivers are also shifting to private-hire cars or retiring. There were 13,117 taxis as at the end of 2024, down 29.3 per cent from 18,542 in 2019. Prof Theseira said it will remain ?challenging to provide a viable street-hail service?, noting that booking a ride through a strong matching system is more efficient than hailing a cab on the streets. Only taxis can be hailed on the streets, whereas private-hire car rides are booked through licensed ride-hailing operators, and these vehicles are not allowed to use taxi stands to pick up or drop off passengers. Prof Ong said taxi operators need to look into the way they do business, specifically at how they can attract drivers and appeal to passengers. ?As the market share of private-hire cars is so dominant, consumers will ask if there is really a need for taxis,? he added. Prof Ong said it appears that both drivers and passengers have come to accept private-hire cars as the preferred mode of transport ahead of cabs. As part of a review of the P2P industry, the authorities are exploring how it can encourage drivers entering the sector to opt for taxis and not gravitate automatically to private-hire cars. Already, LTA has streamlined the training curriculum and lowered the fees for drivers to obtain a vocational licence. | ||||
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Entropy72
Master |
15-Jan-2025 17:31
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An improved dividend payout will revive this. A declining interest rate will boost it.
Look out for 27 Feb announcement. |
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Asdfgh101
Member |
15-Jan-2025 15:01
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Seems like our SGX stocks are still at COVID 19 prices even though the whole world has moved on...there is also fx balancing with the recent death by million cuts selldown by funds...once again we are 东 亚 病 夫 | ||||
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Joelton
Supreme |
15-Jan-2025 10:06
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UOBKH lowers target price on ConfortDelGro amid higher platform fees and increasing competition
UOB Kay Hian is keeping its " buy" recommendation on ComfortDelGro (CDG) but with a lower target price of $1.77 from $1.83 previously. 
 
Although analysts Llelleythan Tan and Heidi Mo are upbeat on strong earnings growth, the group has recently raised its taxi platform fees starting 2025 and is expected to face increasing competiition with two new ride-hailing competitors entering the market. 
 
The group has increased its platform fee on its online booking app Sig by 30 cents to 50 cents from the start of 2025, in a respose to rising costs from the Platform Workers Act which would require platform companies such as CDG to contribute more to the Central Provident Fund accounts of platform workers, coupled with work injury initiatives and enhanced insurance coverage.
 
Following the increase in platform fees, CDG&rsquo s platform fees would increase from a flat fee of 70 cents to $1-$1.20 depending on distance travelled and travel time. Other domestic ride-hailing competitors such as Grab and Gojek have also increased their platform fees in response to the Platform Workers Act.
 
" Based on our estimates, we expect minimal earnings impact from the increased platform fees for CDG&rsquo s taxi segment," say Tan and Mo, who reckon that the increase in platform fee revenue would be largely offset by higher manpower costs incurred due to the Platform Workers act.
 
Furthermore, as ride-hailing becomes slightly more expensive sector-wide, they opine that CDG&rsquo s online booking volumes may be impacted as consumers switch to cheaper alternatives such as public transport.
 
" Given that CDG&rsquo s online booking volumes have already been on a downtrend, we expect booking levels to continue trending downwards after the increase in platform fees," they say. 
 
Meanwhile, Singapore' s Land Transport Authority (LTA) announced that two new ride-hailing service providers, Geo Lah and Trans-cab Services, have been awarded one-year provisional licences. The provisional licences would allow the two new operators to fine-tune their operations before being considered for a full Ride-Hail Service Operator Licence. Also, existing major players such as CDG and Grab have had their respective licences renewed.
 
Tan and Mo expect the two new ride-hailing entrants to have a slight negative impact on CDG' s taxi margins as domestic competition intensifies. " Given that most drivers are already on multiple service platforms, assuming competitive pricing from these new entrants, we expect CD&rsquo s declining booking volumes to fall further, leading to lower margins for CDG&rsquo s taxi segment as online booking commission drops," they say. 
 
Furthermore, LTA recently announced that the Tampines bus package which is currently being run by CDG&rsquo s subsidiary, SBS Transit, has been called for tender with results expected in 2H2025. The existing bus package is expected to expire in Jul 2026 and is likely to draw bids from both domestic and foreign operators, similar to recent past tenders in 2022-2023.
 
Besides the usual two-envelope process which takes into account both quality and price factors, the LTA also mentioned that it would evaluate proposals for electric bus operations. As a recap, the Tampines bus package was one of five bus packages which were extended at lower service fees as part of a deal made with LTA due to the shift in financing framework for the Downtown MRT line. The expiry of the other four packages have not been made known to the public.
 
" Like past tenders, we reckon that the upcoming Tampines bus package tender implies potential risks to CDG&rsquo s near- to medium-term earnings no matter the outcome. Even if CDG wins back the Tampines bus package, we expect lower margins due to competitive bidding," say Tan and Mo.
 
In their view, CDG&rsquo s incumbency advantage is likely to increase its chances of winning back the contract given the existing economies of scale and cost savings that would allow it to put in a competitive bid.
 
However, based on estimates, this would lead to a $2 million decline in the group&rsquo s 2026 public transport segmental operating profit as margins compress. If CDG loses the contract, the group is expected to experience around $4 million (a half year&rsquo s contribution) negative impact to its 2026 public transport segmental operating profit. " As our base case, we expect CD to win back the Tampines bus package," say the analysts. 
 
Over in UK, Tan and Mo expect public transport to improve in 4Q2024. Management noted that the UK bus contract renewals are still ongoing, which would lead to a better margin profile for 4Q2024 and beyond.
 
" Excluding the consolidation of the Addison Lee acquisition, we maintain our expectations that margins for the UK business would continue trending upwards towards the high single-digit to low-teens percentage in the medium to long term, albeit at a gradual pace given that only 15-20% of contracts are renewed every year," they say. Also, seasonally higher scheduled bus chartering activities in 4Q2024 would boost segmental revenue and profitability.
 
Closer to home, improving domestic rail ridership would help boost rail revenue y-o-y while bus revenues are set to drop for 4Q2024 due to the loss of the Jurong-West bus contract coupled with softer margins from the Australian business.
 
" Moving into 4Q2024, we expect stiff competition from ride-hailing peers to continue, leading to lower completed bookings and dragging down CDG&rsquo s overall commission on completed jobs," say the analysts. However, additional contributions from the A2B and the newly-completed Addison Lee acquisitions are expected to support the taxi segment&rsquo s upward growth momentum. However, due to acquisition costs, management noted that any significant earnings impact from Addison Lee would likely only come through in 1Q2025.
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NL1730
Member |
10-Jan-2025 08:52
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MAYBANK KIM ENG:  ComfortDelGro Corporation LtdCurrent Price: S$1.46 (as of 7 January 2025)
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Asdfgh101
Member |
04-Dec-2024 09:08
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Hmm have been dormant for quite a while despite non stop good news, wonder when the pushing will begin | ||||
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Entropy72
Master |
28-Nov-2024 23:07
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CRL is more than twice JRL. Hope SBST wins that too. | ||||
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Entropy72
Master |
28-Nov-2024 23:06
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CDG owns 75% of SBST. Revenue averages $70m per year or $50m for CDG share. About 1.3% increase in revenue for CDG whose 2023 annual revenue is $3.8B. Not as big as I thought, but positive nonetheless. | ||||
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Entropy72
Master |
28-Nov-2024 19:36
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Good news! JRL in pocket. Let?s wait for CRL.
SINGAPORE - A joint venture between SBS Transit Rail and French transit company RATP Dev Asia Pacific has been appointed the operator of the Jurong Region MRT Line (JRL). This is the first time that a foreign operator will be involved in the local rail industry, said the Land Transport Authority on Nov 28. RATP Dev Asia Pacific is a subsidiary of French public transport operator RATP Dev. The contract is for nine years, with the option for LTA to extend the licence for two more years. The service fee quoted for 11 years is about $750 million. LTA said the bid submitted by the joint venture was 8 per cent lower than the other bid by SMRT Trains. The 24km JRL will be the seventh MRT line in Singapore, connecting key areas in the western part of Singapore, including the Jurong Industrial Estate, Jurong Innovation District and the Nanyang Technological University. The 24-station above-ground line is slated to open in three stages, from 2027 to 2029, with an initial ridership of 200,000 in the initial years. This is expected to grow to more than 500,000 in tandem with developments in the areas it serves.
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Entropy72
Master |
19-Nov-2024 23:42
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Hope the Morgan Stanley upgrade of Singapore market will propel CDG further. | ||||
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MrBear12
Supreme |
19-Nov-2024 11:23
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Good points raised Entropy.
No wonder you are king of cdl thread
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