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Market chose 1.46.
MrBear12 ( Date: 15-Nov-2024 08:28) Posted:
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Flushing in progress...let's hope it stabilises above 150 next week..
Different Tgt prices of 1.46, 1.70, 1.80.
Take your pick.
Take your pick.
Spurs fan here as well..let's hope this cock rises from the ashes and becomes a phoenix and flys its way back into STI...
Hope it will cross 160 and don' t look back
Asdfgh101 ( Date: 14-Nov-2024 17:20) Posted:
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Beautiful set of 3Q results should break 150 convincingly tomorrow
Maybank trims ComfortDelGro&rsquo s target price on news of London taxi acquisition
Maybank Securities analyst Eric Ong has cut his target price on ComfortDelGro C52 (CDG). This follows news of the Mainboard-listed company&rsquo s GBP269.1 million ($461.2 million) acquisition of one of the largest fleets of premium private hire vehicles in London.
Announced on Oct 23, CDG intends to fund the purchase with external borrowings as it needs to pay off Addison Lee&rsquo s existing debt facilities in full upon completion. Management believes this acquisition will serve as a catalyst for CDG&rsquo s expansion into the &ldquo premium mobility market&rdquo , strengthening its overall point-to-point (P2P) proposition in the UK.
Upon completion, the 7,500 drivers and 5,000 vehicles of the Addison Lee network will join CityFleet Networks&rsquo existing private hire and black taxi fleets elsewhere in the UK such as Liverpool, the Wirral, Chester and Aberdeen.
&ldquo While not exactly cheap, this latest move should expand CDG&rsquo s portfolio in the UK, enabling it to leverage Addison Lee&rsquo s expertise to deepen and scale its differentiated premium segment globally. It will also strengthen the group&rsquo s overall P2P proposition, creating strong synergies with its existing businesses that include pre-planned and on-demand ground transportation for businesses, as well as private and ride-share transfers to airports, bus/train stations and ports via its indirect subsidiary, CMAC, [whose] acquisition concluded in February,&rdquo writes Ong in an Oct 24 note.
Ong is keeping &ldquo buy&rdquo on CDG but with a lower target price of $1.46 from $1.65.
CDG&rsquo s business update for its 3QFY2024 ended Sept 30 is slated for mid-November. Ong expects CDG to record core patmi of about $55 million, up 4% q-o-q and 14% y-o-y.
Addison Lee&rsquo s profit &lsquo appears low&rsquo
Meanwhile, CGS International (CGSI) analyst Ong Khang Chuen is keeping &ldquo add&rdquo on CDG with an unchanged target price of $1.70.
Addison Lee&rsquo s FY2024 profit before tax &ldquo appears low&rdquo at GBP7.7 million, says CGSI&rsquo s Ong. &ldquo This was mainly dragged by high interest burden (up to 10% interest rate). We estimate its FY2024 adjusted ebitda at GBP35 million, which implies the acquisition was valued at 6.2 times trailing enterprise value/ebitda, as debts by Addison Lee will be discharged upon deal completion on Nov 7.&rdquo
Assuming CDG funds the acquisition with new borrowings at 5% interest cost, CGSI&rsquo s Ong estimates the acquisition to be earnings accretive at GBP8 million [$13.71 million] per annum.
Separately, CGSI&rsquo s Ong forecasts CDG to post patmi of $58 million in 3QFY2024, higher than Maybank&rsquo s forecast. &ldquo Tender environment for London public bus remains favourable, and we expect further contract wins by CDG at current elevated margins to drive UK&rsquo s ebit margin towards mid-single-digits by end-FY2024 and to see further improvement in FY2025.&rdquo
Valuation &lsquo palatable&rsquo : DBS
DBS Group Research has the highest target price on CDG among the three research houses, with a &ldquo buy&rdquo call and $1.80 fair value.
&ldquo We believe investors will likely have questions around the strategic fit to CDG and its ability to grow the business going forward,&rdquo write DBS&rsquo s analysts in an Oct 24 note. &ldquo CDG has alluded to challenges in the UK P2P market with intense competition from ride-hail companies, which prompted it to sell its smaller London P2P business to Addison Lee for GBP3 million back in June 2021. However, it is now buying the total business of Addison Lee.&rdquo
While the reversal in stance is noteworthy, DBS believes there is &ldquo justified rationale&rdquo for the sale back then and the purchase now. CDG was &ldquo sub-scale&rdquo back then and Addison Lee&rsquo s valuation has since fallen to &ldquo more palatable levels&rdquo .
Carlyle was looking to sell the company for as high as GBP800 million in 2019 and eventually sold the company back to its founder&rsquo s son, Liam Griffin, with private equity backing at an undisclosed valuation, notes DBS.
&ldquo We do see certain synergy with the recent CMAC acquisition Addison Lee&rsquo s cabs could be utilised as means of transport to meet emergency/last minute travel needs. Moreover, since the takeover by Liam, the company has managed an impressive turnaround with return to profitability. [The] company was making losses pre-Covid-19, from FY2017 to FY2019,&rdquo says DBS.
With incentives in place to retain the management team, DBS believes Addison Lee could continue its &ldquo strong growth trajectory&rdquo , with an estimated 27% ebitda growth in FY2024.
*ComfortDelgro (HOLD/S$1.48/TP:S$1.56)*
*Taxi acquisition in London*
ComfortDelGro announced that its wholly-owned subsidiary, CityFleet Networks, has acquired Addison Lee for GBP269.1 million ($461.2 million). Some details of the deal is listed below.
- Addison Lee is London?s leading premium private hire, courier and black taxi provider.
- On completion, the 7,500 drivers and 5,000 vehicles of the Addison Lee network will join CityFleet Networks? existing private hire and black taxi fleets elsewhere in the UK including Liverpool, the Wirral, Chester and Aberdeen.
- Comfort intends to fully fund the consideration with external borrowings at sub 4% interest.
- The deal is expected to be completed within the next few weeks.
- The total consideration paid includes the extinguishment of roughly S$260m of existing debt from the target.
We understand that the deal was done at a 6.2X EV/EBITDA multiple and is expected to be earnings accretive for Comfort, growing net profit by S$12.5m and our 2025-26 net profit estimates by 4-5%.
https://www.theedgesingapore.com/news/ma/comfortdelgro-subsidiary-acquire-london-black-taxi-provider-gbp2691-mil
*Taxi acquisition in London*
ComfortDelGro announced that its wholly-owned subsidiary, CityFleet Networks, has acquired Addison Lee for GBP269.1 million ($461.2 million). Some details of the deal is listed below.
- Addison Lee is London?s leading premium private hire, courier and black taxi provider.
- On completion, the 7,500 drivers and 5,000 vehicles of the Addison Lee network will join CityFleet Networks? existing private hire and black taxi fleets elsewhere in the UK including Liverpool, the Wirral, Chester and Aberdeen.
- Comfort intends to fully fund the consideration with external borrowings at sub 4% interest.
- The deal is expected to be completed within the next few weeks.
- The total consideration paid includes the extinguishment of roughly S$260m of existing debt from the target.
We understand that the deal was done at a 6.2X EV/EBITDA multiple and is expected to be earnings accretive for Comfort, growing net profit by S$12.5m and our 2025-26 net profit estimates by 4-5%.
https://www.theedgesingapore.com/news/ma/comfortdelgro-subsidiary-acquire-london-black-taxi-provider-gbp2691-mil
ComfortDelGro to acquire UK private hire, black cab provider for £ 269.1 million
The addition of Addison Lee will extend the group&rsquo s London footprint and grow its taxi and private hire network to more than 34,000 vehicles globally
TRANSPORT operator ComfortDelGro is acquiring Addison Lee, a premium private hire, courier and black taxi provider in the United Kingdom, for £ 269.1 million (S$461.2 million).
The acquisition &ndash through wholly-owned subsidiary CityFleet Networks &ndash is a catalyst for ComfortDelGro&rsquo s expansion into the premium mobility market, and strengthens its overall point-to-point proposition in the UK and globally, the group said in a bourse filing on Wednesday (Oct 23).
The addition of Addison Lee will extend ComfortDelGro&rsquo s London footprint and grow its taxi and private hire network to more than 34,000 vehicles globally.
Addison Lee is the largest premium point-to-point operator in the UK, with 7,500 drivers and 5,000 vehicles.
London&rsquo s black cabs, also known as hackney carriages, have operated in the capital since 1634, well before the invention of the internal combustion engine. Famously, their drivers must pass what is believed to be the world&rsquo s toughest taxi exam to earn the right to drive these cabs.
ComfortDelGro managing director and group chief executive Cheng Siak Kian said: &ldquo Beyond expanding our footprint in the UK, this acquisition will enable us to leverage Addison Lee&rsquo s expertise to deepen and scale our premium point-to-point capability globally.&rdquo
ComfortDelGro chairman Mark Greaves said that the acquisition is in line with its strategy to expand the group&rsquo s point-to-point mobility portfolio.
He noted that 90 per cent of Addison Lee&rsquo s existing fleet is already made up of cleaner-energy vehicles, which will also help accelerate ComfortDelGro&rsquo s fleet transition journey.
ComfortDelGro operates CityFleet Networks in several locations across the UK.
It also provides pre-planned and on-demand ground transportation to businesses, as well as private and ride-share transfers to airports, bus and train stations, and ports through its recently acquired business, CMAC Group.
ComfortDelGro also owns and operates several bus and coach services across the UK.
Possibly an overpayment cos no trumpet of whether earnings will be recognised in P AND L for next quarter?
If CDG replaces all its taxis with Robotaxis in Singapore in 10 years time by when it might be more acceptable, CDG would be a $10 stock. $500 extra profit per taxi per day as compared to hiring it out.
Flushing starts! Now is really a good time to pick up
Great news...let's hope the BBs flush this boy soon so that it can rise from the ash like a phoenix...not too sure why this and venture is lagging behind the STI so much
This is significant development for CDG. And bad news for taxi and PHV drivers. However the pace of change can be regulated by LTA based on AV taxi licenses. Both human and AV taxis may co-exists on the roads. Grab will have to shift from asset light to asset heavy business model, in order to benefit from AV taxis. Otherwise, it will be out of business.
CDG will run the AV taxi services in China first and export the capabilities to Singapore / UK / Australia. Already, there are several AV taxi operators in key Chinese cities. Tesla will want to launch AV taxis in US where they are sheltered from Chinese competition. Outside US, Tesla will have hard time competing.
CDG will run the AV taxi services in China first and export the capabilities to Singapore / UK / Australia. Already, there are several AV taxi operators in key Chinese cities. Tesla will want to launch AV taxis in US where they are sheltered from Chinese competition. Outside US, Tesla will have hard time competing.
Joelton ( Date: 02-Aug-2024 08:05) Posted:
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Traditional 7 cents run has yet to appear...will break 155 convincingly end Oct or after 3Q results
Of course there is synergy: Rail operations, rail engineering, global procurement etc.
Alignment ( Date: 27-Sep-2024 20:49) Posted:
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So many overseas acquisitions spreading itself thin, but no obvious cross border synergies.
This counter not slow and steady, it is slow and stagnant. Covid period I think got 1.7 now only 1.5.
Look at all other counters, how many times already ?
Look at all other counters, how many times already ?
Entropy72 ( Date: 26-Sep-2024 22:57) Posted:
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