DBS Group Research 2015-07-01: Subsidiary Shortlisted for London Overground. Maintain HOLD call for ComfortDelGro (TP 3.00)

ComfortDelGro

  • ComfortDelGro’s subsidiary has been shortlisted as one of four potential operators for London Overground. 
  • London Overground is a suburban rail network and is managed by Transport for London (TfL). 
  • The new concession is for 7.5 years from Nov 2016. The tender documents will be issued by end July and bid submission by mid-Oct. 
  • At this juncture, it is still too early to factor this development for CD’s forecasts given the uncertainty of the tender process and the other contenders. 
  • Nonetheless, our back-of-envelope calculation suggests that this could have a c.3% positive impact on CD’s net profit in FY17F if it wins. 
  • Maintain HOLD, TP: S$3.00



(Yeo Kee Yan, Ling Lee Keng)

Source: http://www.dbsvickers.com/




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