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COMFORT DELGRO - MOVING FORWARD
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MambaFinancial89
Veteran |
27-Nov-2023 10:44
Yells: "Be greedy when others are fearful. " |
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Analyst TPs
CIMB: BUY $1.55
DBS: BUY $1.67
Maybank: BUY $1.55
OCBC: HOLD $1.38
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TikTalk
Supreme |
24-Nov-2023 09:53
Yells: "E19 B64 C17" |
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Stronger resistance around $1.38
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TikTalk
Supreme |
24-Nov-2023 09:50
Yells: "E19 B64 C17" |
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Bro, I am waiting for 20cents to buy. 
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MambaFinancial89
Veteran |
20-Nov-2023 14:38
Yells: "Be greedy when others are fearful. " |
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Analysts mostly lift TPs on ComfortDelGro after further earnings recovery
Analysts from UOB Kay Hian Research, DBS Group Research, CGS-CIMB Research, Maybank Securities, RHB Bank Singapore and PhillipCapital are all keeping their &ldquo buy&rdquo and &ldquo add&rdquo calls following ComfortDelGro (CDG) earnings of $49.9 million for the 3QFY2023 ended Sept 30.
The analysts at UOBKH, DBS, Maybank and RHB have all raised their respective target prices to $1.69 from $1.61 previously, $1.67 from $1.65 previously, $1.55 from $1.50 previously and $1.50 from $1.46 previously.
Meanwhile, the analysts at CGS-CIMB and PhillipCapital have both maintained their target prices of $1.55 and $1.31 respectively.
CDGs earnings for 3QFY2024 were 54.5% up y-o-y, and 9.2% higher q-o-q as the groups public transport segment improved. Its margin also increased to 5.0%, up over the 3.4% recorded in 3QFY2022 and 4.8% in 2QFY2023.
UOB Kay Hian analysts Llelleythan Tan Yi Rong and Heidi Mo like CDG for its strong underlying performance during the quarter and its backing by favourable tailwinds. In their report, Tan and Mo note that both of CDGs 9MFY2023 segmental revenue and operating profit formed 69.7% and 65.8% of their full-year forecasts, with operating profit &ldquo slightly below&rdquo expectations.
They write: &ldquo The slight miss was largely due to lower-than-expected core operating margins of 4.3% in 3QFY2023, which we expected at around 4.8% to 5.0% and would have brought CDGs 9MFY2023 operating profit to around 70% of our full-year forecasts.&rdquo
Under CDGs public transport segment, the analysts expect CDG&rsquo s margin expansion to continue into FY2024 due to improving rail ridership in Singapore and its UK bus contract renewals and indexation which have started to come through.
The analysts note that roughly 70% of UK bus contracts underwent cost indexation by end-3QFY2023, with the remaining contracts expected to be completed within the next two quarters.
Coupled with the upcoming 7% fare increase in Singapore beginning in early December, Tan and Mo expect the ongoing UK indexation and renewals to help support CDG and expand segmental margins going into FY2024.
Meanwhile, margins for CDGs Australian operations softened slightly on a sequential basis, but are expected to stay largely stable going into 4QFY2023.
While CDGs 9MFY2023 taxi operating profit underperformed at 61.1% of Tan and Mos full-year forecasts due to the higher q-o-q operating costs and intense pricing competition, they expect potential upward revisions to CDGs 5% online commission rate in 4QFY2023 and FY2024, which would help close in on the groups peers and boost segmental margins.
CGS-CIMB analyst Ong Khang Chuen sees CDGs earnings recovery picking up steam in 2HFY2023 with an 84% y-o-y patmi growth, while PhilipCapitals Paul Chew expects the groups earnings growth to sustain into FY2024, supported by the re-pricing of bus contracts in the UK, improvement in bus efficiency in Australia as drivers return, platform fees raising taxi margins and higher fares driving up Singapore rail profitability.
Maybank analyst Eric Ong adds that CDG is armed with a strong net cash balance of $500 million, and that the group is constantly exploring accretive merger and acquisition (M& A) opportunities, including overseas and adjacent segments to sustain its long-term growth.
He writes: &ldquo Its partnership with Yinson GreenTech will add 400 EV chargers in Malaysia, while CDG Ventures also invested US$2 million ($2.6 million) in car-sharing platform Drive lah that will supply a maximum of 3,000 vehicles to Drive mate in Australia.&rdquo
On the groups potential share price catalysts, the analysts agree on CDGs earnings-accretive overseas acquisitions, bus tender contract wins and increase in taxi commission rates, while RHB analyst Shekhar Jaiswal adds that &ldquo more rational competition&rdquo in the point-to-point transport segment could also be a key driver.
Conversely, the analysts point to CDGs slower margin recovery due to the inability to pass on costs, higher-than-expected operating costs amid current inflationary pressures and a decline in taxi utilisation or heightened competition as possible downside risks.
CGS-CIMBs Ong adds that negative foreign exchange (forex) translation could also have an impact given the strong Singapore dollar, while DBS analysts Andy Sim and Chee Zheng Feng include the resurgence of high inflation in the UK leading to losses due to indexation lag effect as another potential factor.
Changes in earnings estimates
UOBKHs Tan and Mo have decreased their FY2023 patmi forecast to $183.4 million from $195.7 million previously, but increased their FY2024 to FY2025 patmi forecasts to $238.2 million from $226.9 million previously, on the back of lower margin assumptions for FY2023 and higher contributions from the public transport segment for their FY2024 to FY2025 patmi forecasts.
DBSs Sim and Chee have similarly raised their FY2023 to FY2024 earnings marginally by 1% to 4%, while Maybank&rsquo s Ong has tweaked his FY2023 to FY2025 earnings per share (EPS) by 3% to 4% due to slightly better earnings before interest and taxes (ebit) margin assumptions.
RHBs Jaiswal has also trimmed his FY2023 earnings by 4.6% but raised his FY2024 to FY2025 figures by 4.1% and 3.1% respectively, attributing it to higher operating costs for FY2023 and anticipated improvements in both the public transport as well as taxi and private hire businesses in FY2024 to FY2025.
PhillipCapitals Chew has lowered his FY2023 revenue by 4% and maintained his patmi, while CGS-CIMB&rsquo s Ong noted no changes in his estimates.
Source: The Edge
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Potato
Veteran |
16-Nov-2023 10:53
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Where is Conman? | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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josephyeo
Elite |
15-Nov-2023 23:44
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Full year dividend for last financial year was: 8.48 cts include special dividends | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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josephyeo
Elite |
15-Nov-2023 23:41
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ComfortDelgro dividend history:
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Alignment
Senior |
15-Nov-2023 12:00
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UK business doing better this year but bad economic prospects next year onwards. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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MambaFinancial89
Veteran |
15-Nov-2023 11:56
Yells: "Be greedy when others are fearful. " |
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$1.34 is really an impregnable fortress, hard to break. $52-week high was $1.36. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Joelton
Supreme |
15-Nov-2023 11:08
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ComfortDelGro Q3 net profit rises 54.5% to S$49.9 million
LAND transport giant ComfortDelGro : C52 -0.76% posted a 54.5 per cent rise in net profit to S$49.9 million for the third quarter ended Sep 30, 2023, from S$32.3 million a year earlier.
The company noted that its profit after tax and minority interests (Patmi) margin for the quarter rose to 5 per cent, from 3.4 per cent a year earlier. Revenue over the same period rose 3.8 per cent to S$996.6 million, from S$960.3 million a year ago.
In a business update on Tuesday (Nov 14), the company noted that its public transport business improved as renewals and indexation in the UK continued to improve margins.
Revenue for its public transport business in Q3 grew 3.4 per cent year on year to S$758.5 million, while operating profit gained 23.8 per cent to S$33.8 million.
As for its taxi and private hire business, the company noted that demand remains high, although competition is increasing.
It added that it has introduced a platform fee to its Zig app since July this year, and that its taxi fleet size holds firm, with a slight increase in market share.
Revenue for its taxi and private hire business in Q3 grew 3.3 per cent to S$147.6 million, as operating profit rose 43.5 per cent to S$28.7 million.
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MambaFinancial89
Veteran |
15-Nov-2023 09:36
Yells: "Be greedy when others are fearful. " |
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UK public transport turning a corner - 9M23 revenue in line with expectations at 72% of FY23F estimates, with earnings slightly ahead at 75% - 3Q23 earnings improved sequentially to S$49.9m (+9% q-o-q) on back of positive contribution from UK Public Transport - FY23F/24F earnings raised by 1.7%/3.4% on higher margins for UK Public Transport and Taxi & Private Hire segment - Maintain BUY with slightly higher TP of S$1.67 Maintain BUY with higher revised TP of S$1.67. We maintain our BUY recommendation on ComfortDelGro Group (CDG) with higher revised TP of S$1.67 on earlier than expected UK Public Transport turnaround and higher margins for Taxi & Private hire segment. 3Q23 slightly ahead of expectations 9M23 revenue/PATMI at 72%/75% of our FY23F estimates. 9M23 revenue and PATMI came in at S$2.86bn and S$128m respectively, with revenue tracking in line with expectations and PATMI tracking slightly ahead, on expectations of 4Q23 performance to be similar to 3Q23 (3Q23 PATMI of S$49.9m). UK Public Transport turned profitable in 3Q23. UK Public Transport segment reported operating profit of S$6.1m, a turnaround from four consecutive quarters of losses. This was due to UK fare indexation kicking in and renewal of contracts at much higher margins as the bidding environment has turned more sensible and less aggressive, according to management. Current significant indexation effect is expected to extend into 1H23 before moderating. Taxi & Private Hire margin continues to improve with introduction of platform fees and lower rental discounts in China. Operating margin for this segment continues to trend upwards from 18.3% in 2Q23 to 19.3% in 3Q23. However, revenue growth slowed to +5% q-o-q, S$6.8m, largely attributable to S$5-6m in platform fees (effective Jul-23). China operation is expected to remain soft with recovery to pre-COVID level likely in 2H24. Our View PATMI is trending ahead of FY23F estimates, forming 75% of estimates and expect 4Q23 to perform at least on par with 2Q23. UK Public Transport segment has recovered earlier than expected and should see further profitability improvement going into 1H24F. Singapore Public Transport and Other Segments could see a slight sequential tapering off in 4Q23 on higher operating costs and expenses respectively. Overall, on a net basis, we believe the company should be on track to achieve at least the same level of profitability as 2Q23 in 4Q23, thus coming in slightly ahead our original FY23F estimates. Taxi & Private Hire segment seeing heightened competition. Overall bookings have remained stable q-o-q whereas the number of private hire vehicles (proxy for drivers) in the Singapore market has increased. Management also alluded to aggressive fare pricing by competitors but noted that consumer demand for P2P transport remains strong. Accordingly, we have factored in relatively stable Taxi & Private Hire operating profit for FY24F despite ridership growth tailwinds. We believe that with industry players heading towards profitability, competition in the P2P transport should ease and CDG&rsquo s diversified private hire operations position it well to emerge as one of the survivors in this market. Singapore Public Transport to see revenue and profitability uplift from 7% fare revision and increasing ridership. We believe continued ridership growth and the upcoming 7% fare revision effective 23 Dec-23 should provide top and bottom-line uplift to Singapore Public Transport segment. Accordingly, we raised our revenue and earnings assumption for the group&rsquo s Singapore rail operations in FY24F. Valuation and forecasts FY23F/24F earnings raised marginally by 1-4%. We raised our FY23F/24F earnings by +1.7%/+3.4% factoring in higher operating margins for Public Transport (UK and SG) and Taxi & Private Hire segments. Reiterate BUY, TP at S$1.67on higher FY24F book value and earnings. We based our TP on a blended valuation of 5-year average historical PB and EV/EBITDA at 1.3x and 5x, respectively. Based on our revised earnings estimate, the current price represents an attractive 4.9%/6.0% FY23F/FY24F dividend yield. The sequential improvement seen in 3Q23 and for the past two quarters should lend confidence to the recovery trajectory of the group, and that the worst has passed. With expected earnings recovery in FY24F, valuations at 1.1x PB and 13.4x PE look undemanding, along with its strong balance sheet. We reiterate BUY with revised TP of S$1.67. Source: DBS Vickers Report, 15 Nov 2023 |
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MambaFinancial89
Veteran |
15-Nov-2023 09:27
Yells: "Be greedy when others are fearful. " |
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ComfortDelGro 3QFY2023 earnings up 54.5% y-o-y on improved public transport segment ComfortDelGro (CDG) has reported earnings of $49.9 million for its 3QFY2023 ended Sept 30, up 54.5% y-o-y, as the companys public transport segment improved from its performance last year. The companys earnings were also up by 9.2% q-o-q from $45.7 million in 2QFY2023, while its patmi margin increased to 5.0%, up over the 3.4% recorded in 3QFY2022 and 4.8% in 2QFY2023. Revenue for the period was also up by 3.8% y-o-y to $996.6 million, while operating costs increased to $833.4 million in 3QFY2023 from $815.8 million in the same period last year. CDGs public transport segment, comprising public buses, rail services and scheduled buses, recorded a $28.5 million, or 3.9%, increase in revenue to $758.5 million in 3QFY2023, boosted by renewals in the UK, where indexation continued to improve margins. Its taxi and private hire segment also posted a y-o-y revenue improvement of $6.8 million or 4.8% to $147.6 million in 3QFY2023 as platform fees were introduced for Singapore taxis from July 1 and China recorded lower rental discounts as its post-Covid reopening continues. Despite increasing competition in the private hire space, CDGs Singapore taxi fleet size held firm during the quarter, slightly increasing its market share. As at Sept 30, CDGs cash and short-term deposits stood at $849.9 million. |
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spursfan
Elite |
14-Nov-2023 17:45
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https://links.sgx.com/1.0.0/corporate-announcements/OY9BA6Y0Q84BL86I/778067_ComfortDelGro%20-%203Q2023%20Results%20Presentation%20-14.11.2024.pdf | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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MambaFinancial89
Veteran |
10-Nov-2023 13:29
Yells: "Be greedy when others are fearful. " |
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Thank you! Looking forward.
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josephyeo
Elite |
10-Nov-2023 12:31
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14 Nov 2023 - tuesday | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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MambaFinancial89
Veteran |
10-Nov-2023 11:44
Yells: "Be greedy when others are fearful. " |
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Just checking if any bros or sis have insights into when we can expect the 3Q23 results? Much appreciated. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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MambaFinancial89
Veteran |
08-Nov-2023 19:22
Yells: "Be greedy when others are fearful. " |
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Nice to see Silchester International Investors, a London-based institutional investor buying up shares at $1.3367 per share to cross into being a substantial shareholder (5.026%). Excellent signal for long-term shareholders. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Joelton
Supreme |
28-Oct-2023 09:50
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ComfortDelGro invests US$2 million in mobility platform Drive lah
COMFORTDELGRO : C52 -0.76% has invested US$2 million into Drive lah, a shared mobility platform also known as Drive mate in Australia.
The transport group was the lead investor in the funding round which totalled US$5 million. It will also be the startup&rsquo s preferred fleet partner, starting with a collaboration in the third quarter in Sydney and Melbourne.
Subsidiary ComforDelGro Corporation Australia will progressively supply up to 3,000 vehicles to Drive mate&rsquo s platform, which provides car sharing services in Australia, Drive lah said on Friday (Oct 27).
Founded in 2019, Drive lah helps car seekers to rent nearby vehicles from willing car owners. It said it has onboarded over 200,000 registered users to-date and has more than 2,000 cars on its platform.
ComfortDelGro Corporation Australia chief executive Nicholas Yap said the partnership will allow both companies to shape urban mobility, particularly in Australia, where the group has strong foothold in operating buses, taxis and non-emergency patient transport.
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awmingsheng
Member |
20-Oct-2023 11:48
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Came across this article talking about its dividend, probably not a good idea for buying CDG. https://fundflicks.net/article/ComfortDelgro-as-a-Mean-Dividend-Machine--Think-again |
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Entropy72
Master |
16-Oct-2023 21:00
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Source: Nikkei Asia
SINGAPORE ? Singapore?s competition watchdog on Monday raised concerns over ride-hailing giant Grab?s plan to acquire the country?s third largest taxi operator, saying that such a deal could raise the barriers to entry for rival platforms and limit their ability to expand. The Competition and Consumer Commission of Singapore (CCCS) said it is ?unable to conclude? that the proposed acquisition ?does not give rise to any competition concerns,? based on information from the companies and industry feedback. Following the completion of the first phase of its review, the antitrust regulator said that it would need to review the proposed acquisition plan in greater detail. The statement follows Grab?s announcement in July that it had signed an agreement for its car rental unit to acquire local taxi company Trans-cab for an undisclosed sum, subject to regulatory approval, in what would be its first acquisition of a local taxi operator. According to the companies, the acquisition would include Trans-cab?s 2,500 taxi and private-hire vehicles, as well as its maintenance workshop and fuel pump operations. Following Grab?s application for the planned merger, the CCCS completed its initial review for a decision on whether the proposal would breach regulation that prohibits mergers that could substantially reduce competition in the city-state. In operation since 2003, Trans-cab is the third largest taxi company in Singapore, trailing ComfortDelGro and Strides, which is part of leading local transit operator SMRT. Under Singapore?s regulations, licensed ride-hailing operators like Grab are prohibited from making exclusive arrangements that prevent their driver partners from driving for a rival platform. Yet, the CCCS said industry feedback showed there were worries that Grab?s ownership of the Trans-cab fleet may limit the platforms on which taxi drivers do business, which in turn ?may raise barriers to expansion and entry for Grab?s rival ride-hail platforms.? Grab competes with its Indonesian rival Gojek and services like Tada in the city-state. The CCCS said it ?needs to review the competition effects of the proposed acquisition in greater detail? in a statement. The regulator said Grab and Trans-cab may offer commitments to deal with potential concerns. In response to the CCCS announcement on Monday, Grab said it intends to abide by the regulation that promotes open competition and prohibits any form of anti-competitive behaviors such as offering exclusive arrangements to drivers. ?This means that Trans-cab drivers will continue to have the flexibility to earn through multiple ride-hailing platforms and pick up street-hail rides,? a Grab?s spokesperson said in a statement. Grab added that the company?s priority is to work with the CCCS to deal with the areas that require further review. In 2018, the CCCS fined Grab and Uber Technologies a combined 13 million Singapore dollars ($9 million) for their merger of their Southeast Asian operations. The regulator said the deal had reduced competition in the market, highlighting Grab?s increased prices and changes to its loyalty program. |
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